Good Sleep Inc.manufactures soft pillows.Its records revealed the following data:
-Using the above information provided for Good Sleep,the total overhead cost variance is
A)$4,000 (
F).
B)$5,000 (
U).
C)$4,500 (
U).
D)$500 (

Question

Good Sleep Inc.manufactures soft pillows.Its records revealed the following data:  
-Using the above information provided for Good Sleep,the total overhead cost variance is
A)$4,000 (
F). 
B)$5,000 (
U). 
C)$4,500 (
U). 
D)$500 (

Quizplus · Accepted Answer

The total overhead cost variance is calculated by comparing the actual overhead costs to the standard overhead costs. In this case, the variance is $4,500 unfavorable (U), indicating that the actual costs exceeded the standard costs by this amount.