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The following information relating to a company's overhead costs is available. Actual total variable overhead $73,000 Actual total fixed overhead $17,000 Budgeted variable overhead rate

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

Actual total variable overhead $73,000
Actual total fixed overhead $17,000
Budgeted variable overhead rate per machine hour $2.50
Budgeted total fixed overhead $15,000
Budgeted machine hours allowed for actual output 30,000

Based on this information, the total variable overhead variance is:

$2,000 favorable.

$6,000 favorable.

$2,000 unfavorable.

$6,000 unfavorable.

$1,000 favorable.

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