Question

Neocomfort Corporation manufactured 3000 chairs during June. The following variable overhead data relates to June:

Budgeted variable overhead cost per unit	$12.00
Actual variable manufacturing overhead cost	$49,700
Flexible-budget amount for variable manufacturing overhead	$47,900
Variable manufacturing overhead efficiency variance	$800 unfavorable

What is the variable overhead spending variance?

Ecocomfort Corporation manufactured 4000 coolers during October. The following variable overhead data relates to October:

Calculate the actual machine hours used by Stark during October.

Answer 1

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Neocomfort Corporation
Variable overhead spending variance is calculated as Actual variable manufacturing overhead cost minus Budgeted variable overhead cost of actual units produced.
Calculation of budgeted variable overhead cost of actual units produced.
Budgeted variable overhead cost per unit	12.00
Chairs manufactured in June	3,000.00
Budgeted variable overhead cost of 3000 chairs	36,000.00
Variable overhead spending variance
Actual variable manufacturing overhead cost	49,700.00
Budgeted variable overhead cost of 3000 chairs	36,000.00
Variable overhead spending variance	13,700.00	Unfavorable