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High Mountain Lumber (HML) has normal budgeted overhead costs of $115, 150 and a normal capacity of 35,000 direct labor hours for the fourth quarter,

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High Mountain Lumber (HML) has normal budgeted overhead costs of $115, 150 and a normal capacity of 35,000 direct labor hours for the fourth quarter, which are evenly distributed between months. HML allows 0.5 direct labor hours per piece of lumber, and they produced 25,000 pieces of lumber in the second month of the quarter. This took them 13,000 labor hours. If HML had variable overhead costs of $21,000 and fixed overhead costs of $18,000 in the month, what is their total overhead variance? $2, 125 F $3, 718 F $2, 125 U $3, 718 U

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