Information on Shonda Company's overhead costs follows: Actual variable overhead $95,000 Actual fixed overhead $28,000 Standard hours allowed for actual production 30,000 Standard variable overhead rate per direct labor hour $3.25 Standard fixed overhead rate per direct labor hour $1.00 What is the total overhead variance?

Total Overhead Variance    $ 4,500 Favorable.

Explanation:

Shonda Company

Actual variable overhead $95,000

Actual fixed overhead $28,000

Standard hours allowed for actual production 30,000

Standard variable overhead rate per direct labor hour $3.25

Standard fixed overhead rate per direct labor hour $1.00

The total overhead variance can be calculated as follows.

Actual Overhead = $ 95,000+ $ 28,000= $ 123,000

Overhead Charged to Production= ( $ 4.25 * 30000 Hours)= $ 127,500

Total Overhead Variance    $ 4,500 Favorable.

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"we first find value of tax in dollars.

the difference between the two prices   is: 23. 54 - 22 = 1.54

therefore the sales tax in dollars is 1.54

the tax % will be   (amount of tax / original cost price ) × 100

(1.54 / 22) × 100  → (0.07) × 100 =   7

so the tax rate is 7%

we can double check the answer.

7 % of 22   → (7/100) × 22 → 0.07 × 22 = 1.54

22 + 1.54 = 23.54"

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