Problem:
June Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company has provided the following data for the most recent month:
Budgeted level of activity 7,400 MHs
Actual level of activity 7,500 MHs
Cost formula for variable overhead cost $5.90 per MH
Budgeted fixed overhead cost $60,000
Actual total variable overhead $42,750
Actual total fixed overhead $ 61,000
What was the variable overhead spending variance for the month?