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18) The AAA Corporation specializes in manufacturing one type of desk lamp. AAA allocates variable manufacturing overhead costs on the basis of machine hours. AAA
18) The AAA Corporation specializes in manufacturing one type of desk lamp. AAA allocates variable manufacturing overhead costs on the basis of machine hours. AAA budgeted 0.5 machine hours per lamp and allocates overhead at a rate of $1.50 per machine hour. Last year AAA manufactured 20,000 lamps, used 100,000 machine hours and incurred actual overhead costs of $200,000 What was AAA's variable manufacturing overhead rate variance last year? A) $205,000 favorable B) $50,000 unfavorable C) $205,000 unfavorable D) $50,000 favorable
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