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Question
The following information relating to a company's overhead costs is available. Based on this information, the total overhead variance is:
| Budgeted fixed overhead rate per machine hour | $0.50 |
| Actual variable overhead | $73,000 |
| Budgeted variable overhead rate per machine hour | $2.50 |
| Actual fixed overhead | $17,000 |
| Budgeted hours allowed for actual output achieved | 32,000 |
Based on this information, the total overhead variance is:
A. $7,000 favorable.
B. $6,000 favorable.
C. $1,000 unfavorable.
D. $6,000 unfavorable.
E. $1,000 favorable.
Answer
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Related questions
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