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midge incorporated reports the following information for the current year, which is its first year of operations: units produced this year 750,000 units units sold this year 740,000 units direct materials $ 18.30 per unit direct labor $ 14.20 per unit variable overhead ? in total fixed overhead $ 4,500,000 in total if the company's cost per unit of finished goods using absorption costing is $39.75, what is total variable overhead?

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tutorconsortium113

The overall variable overhead variance is $6,700 in the unfavorable direction.

What is total variable overhead?

The total variable overhead is a difference between budgeted overhead and actual overhead.

In mathematically,

Total variable overhead = Budgeted overhead - actual overhead

where,

Overhead budgeted = variable cost unit generated variable overhead = 24,700 * $7.40

= $182,780

And actual overhead is $189,480

So,

Total variable overhead = $182,780 - $189,480 = -$6,700 unfavorable

Hence, The total variable overhead variance is $6,700 unfavorable

To learn more about variable overhead refer

https://brainly.com/question/15726137

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