Castleton Corporation manufactured 36,500 units during March. The following fixed overhead data relates to March: Actual Budgeted Production 36,500 units 35,000 units Machine-hours 5,400 hours 5,250 hours Fixed overhead costs for March $139,510 $131,250 What is the fixed overhead spending variance?

Spending variance  =   $8260   unfavorable

Explanation:

The fixed overhead spending variance is the difference between budgeted overhead and actual overhead incurred. It shows he amount by the budgeted and actual overhead differ.

Budgeted overhead                                    $131,250

Actual overhead                                           $139,510

Variance                                                         8260   unfavorable

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