Fletcher Company collected the following data regarding production of one of its products. Compute the variable overhead cost variance.

Direct labor standard (2.0 hrs. @ $13.10/hr.) $ 26.20 per finished unit

Actual direct labor hours 89,500 hrs.

Budgeted units 46,000 units

Actual finished units produced 44,000 units

Standard variable OH rate (2 hrs. @ $15.00/hr.) $ 30.00 per finished unit

Standard fixed OH rate ($515,200/46,000 units) $ 11.20 per unit

Actual cost of variable overhead costs incurred $ 1,312,000

Actual cost of fixed overhead costs incurred $ 430,000

Multiple Choice

$18,350 unfavorable.

$18,000 unfavorable.

$18,000 favorable.

$10,350 favorable.

$8,000 favorable.