Answer:
Variable overhead variance = $2,550 favorable
Explanation:
<em>Flexible budget is that which is that which recognizes the cost behavior and is used for control purpose. It is prepared based on the actual level of activity achieved.</em>
<em>The variable overhead rate variance is the difference between the actual variable overhead cost and the actual hours multiplied by the standard variable overhead rate.</em>
Actual hours of labour should have cost
($30× 850) 25500
but did cost <u>22,950</u>
Variable overhead variance <u>2,550 </u>favorable
Variable overhead rate variance = $2,550 favorable
Variable overhead deficiency variance
<u />