Question
Calculating the Total Overhead Variance Standish Company manufactures consumer products and provided the following information for the month of February: Units produced 131,400 Standard direct
Calculating the Total Overhead Variance
Standish Company manufactures consumer products and provided the following information for the month of February:
Units produced 131,400
Standard direct labor hours per unit 0.2
Standard variable overhead rate (per direct labor hour) $3.40
Actual variable overhead costs $88,650
Actual hours worked 26,850
Required:
1. Calculate the total variable overhead variance.
$__________ Favorable
2. What if actual production had been 128,900 units? How would that affect the total variable overhead variance? Indicate what the new variance would be below.
$__________ Unfavorable
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