Answer:
Total Overhead Variance $ 4,500 Favorable.
Explanation:
Shonda Company
Actual variable overhead $95,000
Actual fixed overhead $28,000
Standard hours allowed for actual production 30,000
Standard variable overhead rate per direct labor hour $3.25
Standard fixed overhead rate per direct labor hour $1.00
The total overhead variance can be calculated as follows.
Actual Overhead = $ 95,000+ $ 28,000= $ 123,000
Overhead Charged to Production= ( $ 4.25 * 30000 Hours)= $ 127,500
Total Overhead Variance $ 4,500 Favorable.
