Fletcher Company collected the following data regarding production of one of its products. Compute the variable overhead cost variance.
A) $18,000 favorable.
B) $4,000 favorable.
C) $18,000 unfavorable.
D) $18,300 favorable.
E) $14,300 unfavorable.

Question

Fletcher Company collected the following data regarding production of one of its products. Compute the variable overhead cost variance. 
A) $18,000 favorable. 
B) $4,000 favorable. 
C) $18,000 unfavorable. 
D) $18,300 favorable. 
E) $14,300 unfavorable.

Quizplus · Accepted Answer

Actual variable overhead costs = $1,140,000
Applied = 40,000 × $28.60 = $1,144,000; Variable overhead cost variance = $4,000 favorable

Fletcher Company Collected the Following Data Regarding Production of One