Absolute Systems allocates manufacturing overhead based on machine hours. Each connector should require 10 machine hours. According to the static budget, absolute expected to incur the following:
1000 machine hours per month (100 connectors * 10 machine hours per connector)
$8,500 in variable manufacturing overhead costs
$8115 in fixed manufacturing overhead costs
During August, Absolute actually used 600 machine hours to make 80 connectors and spent $5700 in variable manufacturing costs and $9600 in fixed manufacturing overhead costs. Calculate the variable overhead spending variance for Absolute.
a. $600 U
b. $1,100 F
c. $1,700 F
d. $2,300 F
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