What is the variable overhead spending variance


Data for the Rock Company are as follows:

Budgeted Amounts:
Machine Hours - 25 hours per unit
Variable Overhead Rate - $.25 (25 cents) per machine hour
Fixed Overhead - $800,000
Output - 8,000 units

Actual amounts:
Variable overhead - $58,000
Fixed overhead - $810,000
Machine hours worked - 220,000
Actual output - 9,000 Units

Budgeted machine hours per unit are used to allocate variable and fixed manufacturing overhead and a four-way variance analysis is used. What is the variable overhead spending variance?

 

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Accounting Basics: What is the variable overhead spending variance
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