Chapter 21, Problem 18QS

A Total variable overhead cost variance P4

Mosaic Company applies overhead using machine hours and reports the following information. Compute the total variable overhead cost variance and classify it as favorable or unfavorable.

Actual machine hours used	4,700 hours
Standard machine hours (for actual production)	5,000 hours
Actual variable overhead rate per hour	$4.15
Standard variable overhead rate per hour	$4.00