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3 years ago

The following information relating to a company's overhead costs is available.

Business

1 answer:

Nimfa-mama [501]3 years ago

3 0

Answer: $2,000 favorable

Explanation:

Total variable overhead variance = Budgeted variable overhead - Actual total variable overhead

Budgeted variable overhead = Budgeted machine hours allowed for actual output * Budgeted variable overhead rate per machine hour

= 30,000 * 2.50

= $75,000

Total variable overhead variance = 75,000 - 73,000

= $2,000 favorable

Favorable because the actual amount was less than the budgeted one.

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3 years ago

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Answer:

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