Reference no: EM131758368

Calculating the Total Overhead Variance

Standish Company manufactures consumer products and provided the following information for the month of February:

Units produced 131,900
Standard direct labor hours per unit 0.2
Standard variable overhead rate (per direct labor hour) $3.40
Actual variable overhead costs $88,750
Actual hours worked 26,650

Required:

1. Calculate the total variable overhead variance.

2. What if actual production had been 129,300 units? How would that affect the total variable overhead variance? Indicate what the new variance would be below.