Orlando Company, which applies overhead to production on the basis of machine hours, reported the following data for the period just ended:Actual units produced: 12,000Actual variable overhead incurred: $77,700Actual machine hours worked: 18,800Standard variable overhead cost per machine hour: $4.50If Orlando estimates 1.5 hours to manufacture a completed unit, the company's variable-overhead spending variance is:
A. $3,600 unfavorable.
B. $3,600 favorable.
C. $6,900 favorable.
D. $6,900 unfavorable.
E. None of the answers is correct.
Answer: C
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