The Latham Company provides the following standard cost data per unit of product:
Variable overhead (2 hours @ $2 per hour) 4.00
During the period, the company produced and sold 22,000 units incurring the following costs:
Variable overhead 43,500 hours @ $1.95 per hour
The total variable overhead variance was:
$2,200 favorable.
$3,175 unfavorable.
$2,200 unfavorable.
$3,175 favorable.