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Fatimah Almenhaly is a supervisor and the head of variance analysis for Eastern Michigan University's Food Services subdivision. Fatimah is attempting to zero in on

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Fatimah Almenhaly is a supervisor and the head of variance analysis for Eastern Michigan University's Food Services subdivision. Fatimah is attempting to zero in on the reasons behind differences between the Food Services' actual results and its flexible budget. The standard cost card for an individual serving is reproduced here: Standard Cost EMU Food Services Standard Cost Card Standard Standard Inputs Quantity/Hours Price/Rate Direct Materials 0.5 pounds $2.50/pound Direct Labor 0.2 hours $10/hour Variable Manufacturing Overhead 0.2 hours $12/hour Total Standard Cost per Unit $ 1.25 $ 2.00 $ 2.40 $ 5.65 At the end of the period, EMU Food Services' actual inputs and costs were determined to be: Actual Production Actual Direct Materials Cost Actual Direct Materials Purchased Actual Direct Materials Used Actual Direct Labor Hours Actual Direct Labor Cost Actual Variable Manufacturing Overhead 20,000 $ 27,000 11,000 10,500 4.300 44,000 $ 47.500 What will Fatimah find for EMU Food Services Variable Overhead Rate Variance? 500 Favorable 4,100 Favorable 3,600 Unfavorable 3,600 Favorable

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