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Business, 06.04.2020 19:27 mikailah0988

A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its variable manufacturing overhead standards on direct labor-hours.

Standard hours per unit of output 3.80 machine hours
Standard variable overhead rate $11.15 per machine hour

The following data pertain to operations for the last month:
Actual hours 8700 machine hours
Actual variable manufacturing overhead cost $95840
Actual output 2100 units

What is the variable overhead rate variance for the month?

A.) 1446F

B.) 1446U

C.) 1165F

D.) 1165U

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Answers: 3

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