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the variable overhead spending variance was 639371

Air Fresh Industries uses a standard overhead costing system for the production of its EnergyPro cooling systems. Based on a capacity of 120,000 direct labor hours, the standard costs per unit of EnergyPro are applied to production as follows:

Variable overhead portion

2 hours @ $16 _ $32

Fixed overhead portion

2 hours @ $10 _ $20

During August, 30,000 units of EnergyPro were scheduled for production, but only 27,000 units were actually produced. Actual direct labor cost incurred was $885,600 for 55,350 actual hours of work. Actual variable overhead cost incurred was $863,450, and actual fixed overhead cost was $622,000.

The variable overhead spending variance was

a. $540 U.

b. $21,600 F.

c. $22,140 F.

d. $24,000 F.

e. $96,540 F.

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