Problem 23-5A (Part Level Submission)

Hart Labs, Inc. provides mad cow disease testing for both state and federal governmental agricultural agencies. Because the company's customers are governmental agencies, prices are strictly regulated. Therefore, Hart Labs must constantly monitor and control its testing costs. Shown below are the standard costs for a typical test.

Direct materials (2test tubes @ $1.90per tube) $3.80

Direct labor (1hour @ $30per hour) 30.00

Variable overhead (1hour @ $7.00per hour) 7.00

Fixed overhead (1hour @ $12.00per hour)12.00

Total standard cost per test $52.80

The lab does not maintain an inventory of test tubes. As a result, the tubes purchased each month are used that month. Actual activity for the month of November 2017, when1,100tests were conducted, resulted in the following:

Direct materials (2,222test tubes) $3,933

Direct labor (1,155hours) 33,495

Variable overhead 7,106

Fixed overhead 13,101

Monthly budgeted fixed overhead is $17,400. Revenues for the month were $73,700, and selling and administrative expenses were $4,500.

What is the total overhead variance? Please show work.