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Fletcher Company collected the following data regarding production of one of its products. Compute the variable overhead cost variance.
Direct labor standard (2.0 hrs. @ $13.10/hr.) $ 26.20 per finished unit
Actual direct labor hours 89,500 hrs.
Budgeted units 46,000 units
Actual finished units produced 44,000 units
Standard variable OH rate (2 hrs. @ $15.00/hr.) $ 30.00 per finished unit
Standard fixed OH rate ($515,200/46,000 units) $ 11.20 per unit
Actual cost of variable overhead costs incurred $ 1,312,000
Actual cost of fixed overhead costs incurred $ 430,000
Multiple Choice
$18,350 unfavorable.
$18,000 unfavorable.
$18,000 favorable.
$10,350 favorable.
$8,000 favorable.
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