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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?
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