Answer:
$10,000 unfavorable
Explanation:
The computation of the total variable overhead variance is shown below:
Total variable overhead variance is
= (Actual variable overhead cost - (manufactured units Ă— standard variable overhead rate Ă— required standard direct labor hours))
= ($40,000 - (2,500 units Ă— $4 Ă— 3)]
= $40,000 - $30,000
= $10,000 unfavorable
Since actual cost is more than the standard cost so it would be unfavorable variance