Answer:
Total overhead variance = $1,255 F
Explanation:
<em>Total overhead variance is the sum of the expenditure variance and efficiency variance of overhead. </em>
<em>Absorbed overhead = Predetermined overhead rate per hour× Actual labour hour</em>
<em>Expenditure variance</em>
$
standard cost of actual hours
= (20,900× $4.95) 103,455
Actual overhead = <u>122,990</u>
Under-absorbed overhead <u> 19,535 Adverse</u>
<em>Efficiency variance</em>
(Standard hours - Actual hours)× pre-determined rate
(25,100- 20,900)× $4.95 = $20,790 Favorable
Total overhead variance = 20,790 F + 19,535 A =$1,255 F
Total overhead variance = $1,255 F
