Assume that the total overhead variance is x We are given that the total labor variance is twice the total overhead variance. This means that, the total labor variance is 2x
Total variance can be calculated as follows: Total variance = Total materials variance + Total overhead variance + Total labor variance
We have: Total variance = $35000 Total materials variance = $14000 Total overhead variance = x Total labor variance = 2x
Substitute in the equation and solve for x as follows: 35000 = 14000 + x + 2x 35000 - 14000 = 3x 21000 = 3x x = 21000/3 x = 7000
Based on the above calculations: Total overhead variance = x = $7000 Total labor variance = 2x = 2*7000 = $14000
