Greenleaf Manufacturing uses the following standard to produce a single unit of its product: variable overhead of $7.50 (3 hours per unit @ $2.50 per hour). Actual data for the month show a variable overhead cost of $185,000 and 22,000 units produced. What is the total variable overhead variance?

Greenleaf Manufacturing uses the following standard to produce a single unit of its product: variable overhead of $7.50 (3 hours per unit @ $2.50 per hour). Actual data for the month show a variable overhead cost of $185,000 and 22,000 units produced. What is the total variable overhead variance?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter10: Standard Costing And Variance Analysis

Section: Chapter Questions

Problem 58E: At the beginning of the year, Lopez Company had the following standard cost sheet for one of its...

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Question

What is the total variable overhead variance of this general accounting question?

Greenleaf Manufacturing uses the following standard to produce a
single unit of its product: variable overhead of $7.50 (3 hours per
unit @ $2.50 per hour). Actual data for the month show a variable
overhead cost of $185,000 and 22,000 units produced.
What is the total variable overhead variance?

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