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The following information relating to a company's overhead costs is available.
| | | | |
| Budgeted fixed overhead rate per machine hour | $ | 0.50 | |
| Actual variable overhead | $ | 73,000 | |
| Budgeted variable overhead rate per machine hour | $ | 2.50 | |
| Actual fixed overhead | $ | 17,000 | |
| Budgeted hours allowed for actual output achieved | | 32,000 | |
| |
Based on this information, the total overhead variance is:
Multiple Choice
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$6,000 favorable.
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$1,000 favorable.
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$7,000 favorable.
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$6,000 unfavorable.
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$1,000 unfavorable.
Answer & Explanation
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