[Actual overhead Overhead charged to production]

EXAMPLE:
At the end of a month the data for a department are as follows:
Actual overhead $7,384

850
Units produced units

3,475
Actual hours used hours

4.00
Standard hours allowed her unit of product hours

Calculate net factory overhead variance.

Calculation

Actual departmental overhead $7,384

Overhead charged to production: 3,400 standard hours

allowed $2 standard overhead rate 6,800

$584
Overall or net overhead variance unfav.

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