Question

required information
use the following information for the quick study below. (algo)
the following information applies to the questions displayed below.
airpro corporation reports the following for this period.
actual total overhead: $28,825
standard overhead applied: $33,480
budgeted (flexible) variable overhead rate: $2.10 per unit
budgeted fixed overhead: $11,900
predicted activity level: 11,900 units
actual activity level: 10,800 units
qs 21 - 15 (algo) total overhead and controllable variances lo p4
enter your answers in the tabs below.
required a required b
compute the total overhead variance and identify it as favorable or unfavorable.
total overhead variance
actual total overhead
standard overhead applied
total overhead variance

Explanation:

Step1: Recall the formula for total overhead variance

Total overhead variance = Standard overhead applied - Actual total overhead

Step2: Substitute the given values

Standard overhead applied = $33,480$, Actual total overhead = $28,825$
Total overhead variance = $33480 - 28825$

Step3: Calculate the result

$33480-28825 = 4655$

Since the standard overhead applied is greater than the actual total overhead, the variance is favorable.

Answer:

Standard overhead applied	$33,480$
Total overhead variance	$4,655$ (Favorable)