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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

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 3.90 DLHs
Standard variable overhead rate $ 11.25 per DLH

The following data pertain to operations for the last month:

Actual direct labor-hours 8,800 DLHs
Actual total variable manufacturing overhead cost $ 95,850
Actual output 2,200 units

What is the variable overhead rate variance for the month?

Multiple Choice

  • $3,150 U

  • $3,431 F

  • $3,431 U

  • $3,150 F

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