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Problem 1: The predetermined overhead rate for Bramble Corp. is $5, comprised of a variable overhead rate of $3 and a fixed rate of $2. The amount of budgeted overhead costs at normal capacity of $150000 was divided by normal capacity of 30000 direct labor hours, to arrive at the predetermined overhead rate of $5. Actual overhead for June was $5328 variable and $3240 fixed, and 900 units were produced. The direct labor standard is 2 hours per unit produced. The total overhead variance is
Option 1: $1080 F.Option 2: $432 F.Option 3: $1080 U.Option 4: $432 U.
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