Answer:
Total variable overhead variance is express = 2,200
Explanation:
given data
overhead rate = $6 per direct labor hour
actual direct labor hours = 6,000
actual variable overhead costs = $37,000
product manufactured = 2,900 units
to find out
total variable overhead variance
solution
we find here standard variable overhead that is
standard variable overhead = 2900 unit × $6 × 2 DL hours
standard variable overhead = $34,800
and
Total variable overhead variance is express as
Total variable overhead variance is express = actual variable overhead - standard variable overhead
so
Total variable overhead variance is express = 37,000 - 34,800
Total variable overhead variance is express = 2,200
