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Cornerstone Exercise 9.6 (Algorithmic) Calculating the Total Overhead Variance Standish Company manufactures consumer products and provided the following information for the month of February: Units

Cornerstone Exercise 9.6 (Algorithmic) Calculating the Total Overhead Variance

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

Units produced 131,600
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 26,500

Required:

1. Calculate the total variable overhead variance. $

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. $

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