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QUESTION

Claire's Caloric Capers produces gourmet cakes.

Claire’s Caloric Capers produces gourmet cakes. Claire’s 2010 budget was based on the production of 3,200 cakes using a standard of 3 direct labor hours per cake and $3 variable overhead per direct labor hour. During the year, Claire used 8,960 direct labor hours to produce 2,800 cakes. If actual variable overhead for the year was $25,000, what was Claire’s variable overhead spending variance?

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