Answer:
Total overhead variance = $375 (Favorable)
Explanation:
Given:
Actual direct labor hours = 18,930
Manufacturing overhead costs = $128,350
Standard hours = 23,750
Predetermined overhead rate = $5.42
Total overhead variance = ?
Computation of total overhead variance:
Total overhead variance = Actual overhead cost - [(Standard hours)(Predetermined overhead rate)]
Total overhead variance = $128,350 - [(23,750)($5.42)]
Total overhead variance = $128,350 - [$128,725]
Total overhead variance = $375 (Favorable)
