Cold Products Corporation manufactured 34,000 ice chests during September. The variable overhead cost-allocation base is $11.35 per machine-hour. The following variable overhead data pertain to September: Production Machine-hours Variable overhead cost per machine-hour What is the variable overhead spending variance? OA. $15,017 unfavorable OB. $13,577 unfavorable OC. $1,440 favorable Actual 34,000 units 14,400 hours $11.25 D. $49,940 unfavorable Budgeted 26,000 units 10,000 hours a $11.35

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for …

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on t…