Brisco manufacturing company established a predetermined overhead rate of $12.00 per direct labor hour. The actual variable overhead cost rate was $11.40 per direct labor hour. Brisco planned to use 150,000 hours of direct labor. It actually used 152,000 hours of direct labor.

1. Determine the total flexible budget variable overhead variance.

2. Many companies do not subdivide the total overhead cost variance into price and usage component. Under what circumstances would it be appropriate to distinguish between the price and usage components of a variable overhead cost variance? What would be required to accomplish this type of analysis?