$790 is spending varinace
Explanation:
The following calculation is made to find out the variance in spending.
Flexible budget [tex](\$ 1,200+\$ 5.80 * 3,290)[/tex] = $20,282
Actual results = $21,072
Spending variance = $790
Because the actual expense is greater than the flexible budget; the variance is un-favorable (U).
Thus, from the above calculation, the spending difference is $790 which is not favourable
Note: the spending variance is calculated by comparing the flexible budget with the actual results. The term variance means the difference has to be calculated.