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

Budgeted fixed overhead rate per machine hour	$	1.00
Actual variable overhead	$	96,000
Budgeted variable overhead rate per machine hour	$	2.50
Actual fixed overhead	$	20,000
Budgeted hours allowed for actual output achieved		37,000

Based on this information, the total overhead variance is:

Multiple Choice

• $3,500 favorable.

• $13,500 favorable.

• $10,000 unfavorable.

• $13,500 unfavorable.

• $10,000 favorable.