[mhamidlad]

Fixed overhead expenditure variance = Actual cost – Budgeted cost = $1,250 A
Actual overhead = Budgeted cost – 2%
2% = $1,250
Actual overhead = 1,250/2 × 98 = $61,250

[mhamidlad]

Dear it is very easy, I explain it in this way

2000-(-3000)=$2 × number of units change in inventory
5000=$2 × number of units change in inventory

[mhamidlad]

Thanks a lot for your guide. But this solution make more complication on question. You solved in a right way.

[Author]

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