TOTAL VARIABLE OVERHEAD VARIANCE A company showed the following information for the year:

Standard variable overhead rate (SVOR) per direct labor hour $4.50 Standard hours (SH) allowed per unit 3 Actual production 12,000 Actual variable overhead costs $163,172 Actual direct labor hours 36,100 Required:

. Calculate the actual variable overhead rate (AVOR).

. Calculate the applied variable overhead.

. Calculate the total variable overhead variance.

Cornerstone Exercise