Question

The following information relating to a company's overhead costs is available.
Actual total variable overhead $73,000
Actual total fixed overhead $17,000
Budgeted variable overhead rate per machine hour $ 2.50
Budgeted total fixed overhead $15,000
Budgeted machine hours allowed for actual output 30,000

Based on this information, the total variable overhead variance is:
A.$2,000 favorable.
B.$6,000 favorable.
C.$2,000 unfavorable.
D.$6,000 unfavorable.
E.$1,000 favorable.

Answer

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