The standard cost for Remy’s famous Ratatouille dish include…
The standard cost for Remy’s famous Ratatouille dish includes 1.3 hours of direct labor at $26.00 per hour. The predetermined overhead rate is $16.00 per direct labor hour. The restaurant’s busiest month of the year incurred 4,125 hours of direct labor at an average rate of $26.80 per hour and $65,000 of manufacturing overhead costs. It produced 2,750 units. What is the restaurant’s total overhead variance? (Enter a favorable variance as positive and an unfavorable variance as negative)