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The following standards for variable manufacturing overhead have been established for a company that makes only one product:

Standard hours per unit of output 4.50 hours
Standard variable overhead rate $11.52 per hour

The following data pertain to operations for the last month:

Actual hours 8,900 hours
Actual total labor cost $95,920
Actual output 1,800 units

What is the variable overhead rate variance for the month?
$6,889 F $6,608 U $6,608 F or $6,889 U

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9983520

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