Final answer:
The overhead variance is $100 unfavorable.
Step-by-step explanation:
Overhead variance refers to the difference between the actual overhead costs incurred by a business and the standard overhead costs expected during a specific period. It is a key metric in cost accounting used to assess the efficiency and cost-effectiveness of operations. A favorable overhead variance indicates that actual costs were lower than expected, while an unfavorable variance suggests that costs exceeded the standard.
Analyzing these variances helps businesses optimize resource utilization and control expenses. The overhead variance can be calculated by subtracting the actual overhead from the standard overhead applied. In this case, the actual total overhead is $1,900 and the standard overhead applied is $2,000. Therefore, the overhead variance is $100 unfavorable.