Answer:
Actual variable manufacturing overhead = $102,000
Variable cost variance = $-178,000
Explanation:
Number of parts produced = 40,000 parts
Standard variable manufacturing overhead rate = $35 per machine hour
Standard hours required per part = 0.20 machine hours
Actual machine hours = 3,250 machine hours
Actual variable manufacturing overhead costs = $102,000
Standard hour required to produce 40000 parts = 0.2 × 40000
= 8000 hours
Standard variable manufacturing overhead = 35 × 8000
= $280,000
The actual variable manufacturing overhead costs in April associated with the manufacturing the pool parts is $102,000
Variable cost variance = actual variable manufacturing cost - standard variable manufacturing cost
Variable cost variance = 102000 - 280000
= -178,000
Variable cost variance is $-178,000 (favourable)
