The total variance is $10,000.The total materials variance is $4,000.The total labour variance is twice the total overhead variance.What is the total overhead variance?

Question

Quizplus · Accepted Answer

Let x be the total overhead variance. We have:
Total Variance = Materials Variance + Labor Variance + Overhead Variance
10000 = 4000 + Labor Variance + x
Labor Variance = 2x (given)

Substituting the second equation into the first, we get:
10000 = 4000 + 3x
x = 2000

Therefore, the total overhead variance is $2,000.

The Total Variance Is $10,000