Question

Use the following information for the Quick Study below. (Algo) Skip to question [The following information applies to the questions displayed below.] AirPro Corporation reports the following for this period. Actual total overhead $ 28,825 Standard overhead applied $ 31,310 Budgeted (flexible) variable overhead rate $ 2.10 per unit Budgeted fixed overhead $ 12,400 Predicted activity level 12,400 units Actual activity level 10,100 units

Answer 1

Based on the information provided, we can calculate the overhead variance.

The overhead variance can be calculated using the formula:

Overhead Variance = Actual Total Overhead - Standard Overhead Applied

Plugging in the given values:

Overhead Variance = $28,825 - $31,310

Overhead Variance = -$2,485

The negative value indicates that the actual total overhead is less than the standard overhead applied.

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