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When preparing flexible budget, MAYAR Corporation has the following information available for variable overhead costs

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When preparing flexible budget, MAYAR Corporation has the following information available for variable overhead costs. Direct labor hours are the cost driver for variable overhead costs.

Actual variable overhead costs                                       $5,120

Standard variable overhead costs                  $3.00 per hour

Actual direct labor hours                                        2,000 hours

Standard direct labor hours per unit                          3 hours

Units produced                                                                      1,000

What is the variable overhead spending variance?

Select one:
a. $3,880 Favorable
b. $3,880 Unfavorable
c. $1,000 Unfavorable
d. $880 Favorable