During the year, Hawkings produced 10,000 units, used 20,000 direct labor hours, and incurred variable overhead of $90,000. Budgeted variable overhead for the year was $88,000. The hours allowed per unit are 2.1. The standard variable overhead rate is $4.00 per direct labor hour. The variable overhead spending variance is:
A) $2,000 F.
B) $6,000 U.
C) $10,000 U.
D) $2,000 U.
E) none of these.
C
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