How much is the variable overhead flexible budget variance

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Question - RTC Supply Co. produces cleaning equipment for professional cleaners. At the start of the year, RTC estimated variable overhead costs to be $13 per unit and total fixed overhead costs at $300,000 based on a volume of 60,000 units. The detail for the overhead estimates follows:

Variable Overhead

Budget @ 60,000 units

Actual Costs

Indirect materials

$480,000

$469,500

Utilities

120,000

93,000

Maintenance

180,000

224,000

Total variable overhead

780,000

786,500

Fixed Overhead

 

 

Supervisor salaries

125,000

127,000

Depreciation

150,000

145,000

Other fixed overhead

25,000

26,000

Total fixed overhead

300,000

298,000

Total overhead costs

$1,080,000

$1,084,500

Actual production for the year totaled 59,000 units. How much is the variable overhead flexible budget variance?

Reference no: EM132979960

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