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Mosaic Company applies overhead using machine hours and reports the following information. Actual machine hours used (AH) 5,000 hours Standard machine hours (for actual production)
Mosaic Company applies overhead using machine hours and reports the following information.
Actual machine hours used (AH) | 5,000 | hours | ||
Standard machine hours (for actual production) (SH) | 5,500 | hours | ||
Actual variable overhead rate per hour (AVR) | $ | 4.30 | ||
Standard variable overhead rate per hour (SVR) | $ | 4.15 | ||
Compute the total variable overhead cost variance and classify it as favorable or unfavorable.
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