Mosaic Company applies overhead using machine hours and reports the following information. Actual machine hours used (AH) 4,700 hours Standard machine hours (for actual production) (SH) 5,000 hours Actual variable overhead rate per hour (AVR) $ 4.15 Standard variable overhead rate per hour (SVR) $ 4.00 Compute the total variable overhead cost variance.

How should the environmental effects be dealt with when evaluating this project? the environmental effects should be ignored since the plant is legal without mitigation. the environmental effects should be treated as a sunk cost and therefore ignored. if the utility mitigates for the environmental effects, the project is not acceptable. however, before the company chooses to do the project without mitigation, it needs to make sure that any costs of "ill will" for not mitigating for the environmental effects have been considered in the original analysis. the environmental effects should be treated as a remote possibility and should only be considered at the time in which they actually occur. the environmental effects if not mitigated would result in additional cash flows. therefore, since the plant is legal without mitigation, there are no benefits to performing a "no mitigation" analysis.