The Most Recent Operating Budget for Gilligan Company Is Based

Essay

The most recent operating budget for Gilligan Company is based on production of 42,000 units with 1.0 machine hour allowed per unit. Variable manufacturing overhead is anticipated to be $20 per unit. Actual production was 45,000 units using 40,000 machine hours. Actual variable cost was $725,000.
Required:
Compute the commonly used variances for a variable overhead report. Do not prepare the report.