Answer:
Total overhead variance : $1,742 favorable.
Explanation:
Please find the below for detailed explanation and calculation:
We have the Predetermined Overhead applied is equal to Predetermined overhead rate x Standard hours allowed for the work done = 5.47 x 22,450 = $122,801.5;
We have the Actual Overhead incurred is given at $121,060;
Total overhead variance = Predetermined Overhead applied - Actual Overhead incurred = 122,801.5 - 121,060 = $1,741.5. ( favorable variance as actual overhead incurred is less than predetermine overhead applied).
Thus, the answer is $1,742 (Round answer to 0 decimal places).
