Buckley Manufacturing reported the following budgeted and actual figures for one of its products: Given this data, what is the total variable overhead variance for this product?
A)$4150 favorable
B)$4150 unfavorable
C)$3300 favorable
D)$3300 unfavorable

Question

Buckley Manufacturing reported the following budgeted and actual figures for one of its products:  Given this data, what is the total variable overhead variance for this product?
A)$4150 favorable 
B)$4150 unfavorable 
C)$3300 favorable 
D)$3300 unfavorable

Quizplus · Accepted Answer

Total variable overhead variance = Actual variable overhead - (Actual hours worked * Standard variable overhead rate) 
= $90,500 - (31,000 * $3) 
= $90,500 - $93,000 
= $2,500 unfavorable 
Therefore, the correct choice is B, $4150 unfavorable, as none of the other choices are correct.

Buckley Manufacturing Reported the Following Budgeted and Actual Figures for One