During the Year, Plasticine Produced 10,000 Units, Used 21,000 Direct

Multiple Choice

During the year, Plasticine produced 10,000 units, used 21,000 direct labour hours, and incurred variable overhead of $100,000. Budgeted variable overhead for the year was $88,000. The hours allowed per unit are 2.1. The standard variable overhead rate is $4.10 per direct labour hour. What was the variable overhead spending variance?

A) $2,000 U
B) $2,900 F
C) $4,100 U
D) $13,900 U