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The following information relating to a company's overhead costs is available. Actual total variable overhead $74,000 Actual total fixed overhead $18,000 Budgeted variable overhead rate per machine hour
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The following information relating to a company's overhead costs is available.

Actual total variable overhead $74,000
Actual total fixed overhead $18,000
Budgeted variable overhead rate per machine hour $2.00
Budgeted total fixed overhead $16,000
Budgeted machine hours allowed for actual output 44,000

Based on this information, the total variable overhead variance is:

a. $2,000 favorable.
b. $6,000 favorable.
c. $2,000 unfavorable.
d. $6,000 unfavorable.
e. $1,000 favorable.

User LNT
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21 votes
21 votes
74,000 actual total variable overhead
User BSalita
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