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Formidable Company collected the following information: Standard costs per unit: Variable overhead 4 machine hours @ $6 per machine hour Fixed overhead 4 machine hours
Formidable Company collected the following information:
Standard costs per unit: | |
Variable overhead | 4 machine hours @ $6 per machine hour |
Fixed overhead | 4 machine hours @ $10 per machine hour |
Actual output | 20,000 units |
Denominator (normal capacity) output | 21,000 units |
Actual machine hours | 79,000 machine hours |
Actual variable overhead cost | $540,000 |
Actual fixed overhead cost | $810,000 |
Using the two variance method, what is the total variance?
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