RelyaTech Corp. is a popular car-wash operation that measures its activity in terms of number of cars washed. Last month, the budgeted level of activity was 1,220 cars washed and the actual level of activity was 1,210 cars washed. The cost formula for the washing expenses is $4.60 per car washed plus $25,000 per month. The actual RelyaTech's washing expense was $24,100. Q) What was the RelyaTech's spending variance for the washing expenses last month?

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyz…