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Total Variable Overhead Variance Rath Company showed the following information for the year: Standard variable overhead rate

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  • Requirement 1

( 4 hours x 15000 units)=60000 hours = Answer

  • Requirement 2

Applied Variable Overhead = 60000 hours x $ 3.75 = $ 225,000

  • Requirement 3

Answer = $ 2,184 Favourable

Tota Variable Overhead Variance

(

Standard Cost [as per Req 2]

-

Actual Cost

)

(

$           225,000.00

-

$          222,816.00

)

2184

Variance

$              2,184.00

Favourable-F

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