Jefferson Co. uses the following standard to produce a single unit of its produc

Question

Jefferson Co. uses the following standard to produce a single unit of its product: variable overhead $6.60 (2 hrs. per unit @ $3.30/hr.). Actual data for the month show variable overhead costs of $166,680, and 24,300 units produced. The total variable overhead variance is:

Jefferson Co. uses the following standard to produce a single unit of its product: variable overhead $6.60 (2 hrs. per unit @ $3.30/hr.). Actual data for the month show variable overhead costs of $166,680, and 24,300 units produced. The total variable overhead variance is:

Explanation / Answer

The total variable overhead variance =Actual- standard=166,680-24,300*6.60=166,680-160,380=$6,300.

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