EXERCISE 10-15 (CONTINUED) ALTERNATIVE SOLUTION

1,150 hours × $6.00 per hour $6.00 per hour 900 hours × $7,820 = $6,900 = $5,400 ↑ ↑ ↑Spending Variance, $920 U Efficiency Variance, $1,500 U Total Variance, $2,420 U Alternative Solution: Variable overhead spending variance = AH (AR – SR)