Figure 17-6 -Refer to Figure 17-6

Multiple Choice

Figure 17-6 $\begin{array}{lr}\text { Budgeted fixed overhead for the year } & £ 300,000 \\\text { Budgeted direct labour hours for the year } & 30,000 \\\text { Actual fixed overhead for August } & £ 24,000 \\\text { Actual variable overhead for August } & £ 10,000 \\\text { Direct labour hours worked in August } & 2,600 \\\text { Standard variable overhead cost per direct labour hour } & £ 4 \\\text { Standard direct labour hours allowed for August production } & 2,750\end{array}$
-Refer to Figure 17-6. The variable overhead spending variance would be

A) £2,000 favourable.
B) £1,200 favourable.
C) £400 favourable.
D) £200 favourable.