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The Bozeman Bee Company makes honey. It is trying to determine what its Variable Overhead Rate Variance is to determine if the variance is favorable

The Bozeman Bee Company makes honey. It is trying to determine what its Variable Overhead Rate Variance is to determine if the variance is favorable or unfavorable. Bozeman Bee allocates its overhead costs on a per labor hour rate. The standards it uses are 0.4 direct labor hours per pound of honey it produces at a standard variable overhead rate of $3.50 per direct labor hour. This month Bozeman produced 2,400 lbs. of honey using 1,000 direct labor hours at a total variable overhead cost of $3,650. What is Bozeman's Variable Overhead Rate Variance, and is it favorable or unfavorable

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