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The Following Information Relating to a Company's Overhead Costs Is

Question 127

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The following information relating to a company's overhead costs is available.  Actual total variable overhead $73,000Actual total fixed overhead $17,000 Budgeted variable overhead rate per machine hour $2.50 Budgeted total fixed overhead $15,000 Budgeted machine hours allowed for actual output 30,000\begin{array}{llr} \text { Actual total variable overhead } &\$ 73,000\\ \text {Actual total fixed overhead } &\$ 17,000\\ \text { Budgeted variable overhead rate per machine hour } &\$ 2.50\\ \text { Budgeted total fixed overhead } &\$ 15,000\\ \text { Budgeted machine hours allowed for actual output } &30,000\\\end{array}
Based on this information, the total variable overhead variance is:


A) $6,000 unfavorable.
B) $2,000 unfavorable.
C) $6,000 favorable.
D) $1,000 favorable.
E) $2,000 favorable.

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