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(Points: 1) Tyro Company has a standard cost system in which it applies manufacturing overhead to units of product on the basis of direct...

(Points: 1)
Tyro Company has a standard cost system in which it applies manufacturing overhead to units of product on the basis of direct labour-hours (DLSs). The following information is available:


Actual total overhead costs

$15,000
Actual fixed overhead costs

$7,200
Budgeted fixed overhead costs

$7,000
Actual hours worked

3,500 DLHs
Standard hours allowed for the output

3,800 DLHs
Variable overhead rate

$2.50 per DLH

Based on these data, what is the variable overhead spending variance?

a. $1,700 favourable.
b. $750 unfavourable.
c. $950 favourable.
d. $1,500 unfavourable.

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