At 60,000 Machine Hours,Norwall Company's Static Budget for Variable Overhead

Multiple Choice

At 60,000 machine hours,Norwall Company's static budget for variable overhead costs is $180,000.At 60,000 machine hours,the company's static budget for fixed overhead costs is $300,000.Machine hours are the cost driver of all overhead costs.The static budget is based on 60,000 machine hours.At 60,000 machine hours,the company produces 40,000 units.The following data is available:
$\begin{array} { l } \text {Actual units produced and sold }&42,000 \\ \text {Actual machine hours }&64,000 \\ \text {Actual variable overhead costs }& \$185,600\\ \text {Actual fixed overhead costs }&\$302,400 \\\end{array}$

What is the variable overhead spending variance?

A) $6,400 Unfavorable
B) $6,400 Favorable
C) $1,000 Favorable
D) $1,000 Unfavorable