The following information relating to a company's overhead costs is available.

Budgeted fixed overhead rate per machine hour$0.50

Actual variable overhead$99,000

Budgeted variable overhead rate per machine hour$3.50

Actual fixed overhead$19,000

Budgeted hours allowed for actual output achieved36,000

Based on this information, the total overhead variance is:

Multiple Choice

• $27,000 favorable.
• $26,000 favorable.
• $1,000 unfavorable.
• $26,000 unfavorable.
• $1,000 favorable.