Calculating the Total Overhead Variance

Standish Company manufactures consumer products and provided the following information for the month of February:

Units produced	131,000
Standard direct labor hours per unit	0.20
Standard variable overhead rate (per direct labor hour)	$3.40
Actual variable overhead costs	$88,670
Actual hours worked	26,350

Required:

1. Calculate the total variable overhead variance. $ Favorable

2. What if actual production had been 129,600 units? How would that affect the total variable overhead variance? Indicate what the new variance would be below. $ Unfavorable

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