Information on Shonda Company's factory overhead costs follows: What is the net factory overhead variance?

Question

Information on Shonda Company's factory overhead costs follows:  What is the net factory overhead variance?

Quizplus · Accepted Answer

The net factory overhead variance is calculated by subtracting the actual overhead costs from the budgeted overhead costs. In this case, the budgeted overhead costs were $176,000 and the actual overhead costs were $171,500, resulting in a favorable variance of $4,500 (actual less than budgeted).

Information on Shonda Company's Factory Overhead Costs Follows: What