Tyro Company Has a Standard Cost System That Applies Manufacturing

Multiple Choice

Tyro Company has a standard cost system that applies manufacturing overhead to units of product on the basis of direct labour hours (DLHs) .The following information is available: $\begin{array} { l r } \text { Actual Total Overhead Costs } & \$ 15,000 \\\text { Actual Fixed Overhead Costs } & \$ 7,200 \\\text { Budgeted Fixed Overhead Costs } & \$ 7,000 \\\text { Actual Hours Worked } & 3,500 \text { DLHs } \\\text { Standard Hours Allowed for the Output } & 3,800 \text { DLHs } \\\text { Variable Overhead Rate } & \$ 2.50 \text { per DLH }\end{array}$ Based on these data,what was the variable overhead spending variance?

A) $750 unfavourable.
B) $950 favourable.
C) $1,500 unfavourable.
D) $1,700 favourable.