26 Fletcher Company collected the following data regarding production of one of

Question

26 Fletcher Company collected the following data regarding production of one of its products. Compute the variable overhead cost variance. 00:48:25 26.20 per finished unit 89,500 hrs. 46,000 units 44,000 units Direct labor standard (2.0 hrs. e $13.10/hr.) Actual direct labor hours Budgeted unit:s Actual finished units produced Standard variable OH rate (2 hrs. $15.00/hr.)30.00 per finished unit Standard fixed OH rate ($515,200/46,000 units)11.20 per unit Actual cost of variable overhead costs incurred $1,312,000 Actual cost of fixed overhead costs incurred eBook $ 430,000 Multiple Choice $10,350 favorable $8,000 favorable. $18,000 unfavorable

Explanation / Answer

Variable overhead cost variance = 1312000-(44000*2*15)= 8000 Favorable Option 2 is correct

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