Total estimated overhead costs $650,000 Total estimated DL hours 130,000 Actual overhead costs $640,300 Actual DL hours 127,500 The unadjusted cost of goods sold balance at the end of the year is $56,000. What is the overhead variance? Please provide your answ
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Maney Televisions utilizes a traditional
| Total estimated overhead costs | $650,000 |
| Total estimated DL hours | 130,000 |
| Actual overhead costs | $640,300 |
| Actual DL hours | 127,500 |
The unadjusted cost of goods sold balance at the end of the year is $56,000.
What is the overhead variance? Please provide your answer as a positive number rounded to the nearest whole dollar.
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