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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 5,600 MHs
Actual level of activity 5,400 MHs
Standard variable manufacturing overhead rate $8.70 per MH
Actual total variable manufacturing overhead $44,280
What was the variable overhead rate variance for the month?
$4,440 favorable
$1,740 favorable
$2,700 favorable
$1,640 unfavorable
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