Gantt Textiles Inc

Essay

Gantt Textiles Inc. incurred actual variable overhead expenses of $50,000 in the current year for the production of 6,000 units. Variable overhead was applied at a rate of $3.25 per direct labor hour and 2 direct labor hours were budgeted for each unit. The company used 16,000 direct labor hours for production.
Required: Compute each of the following variances. Indicate whether the variance is favorable (F) or unfavorable (U).