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Millonzi Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company has
Millonzi Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company has provided the following data for the most recent month:
Budgeted level of activity | 3,600 | MHs |
Actual level of activity | 3,500 | MHs |
Standard variable manufacturing overhead rate | $6.30 | per MH |
Actual total variable manufacturing overhead | $21,000 |
What was the variable overhead rate variance for the month? Please explain so that i can understand it! thanks :) |
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