Calculating the Total Overhead Variance

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

Units produced	131,900
Standard direct labor hours per unit	0.2
Standard variable overhead rate (per direct labor hour)	$3.40
Actual variable overhead costs	$88,750
Actual hours worked	26,450

Required:

1. Calculate the total variable overhead variance. $fill in the blank 1

Favorable or UnfavorableUnfavorable

2. What if actual production had been 128,700 units? How would that affect the total variable overhead variance? Indicate what the new variance would be below. $fill in the blank 3

Favorable or UnfavorableUnfavorable