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Stopyra Incorporated makes a single producta cooling coil used in commercial refrigerators. The company has a standard cost system in which it applies overhead to
Stopyra Incorporated makes a single producta cooling coil used in commercial refrigerators. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below:
Budgeted variable manufacturing overhead | $ | 28,200 | ||
Budgeted fixed manufacturing overhead | $ | 89,280 | ||
Budgeted hours | 12,000 | labor-hours | ||
Actual production (a) | 16,000 | units | ||
Standard hours per unit (b) | 0.60 | labor-hours | ||
Standard hours allowed for the actual production (a) (b) | 9,600 | labor-hours | ||
Actual variable manufacturing overhead | $ | 26,967 | ||
Actual fixed manufacturing overhead | $ | 74,280 | ||
Actual hours | 8,900 | labor-hours | ||
The variable overhead rate variance is: |
Group of answer choices
$6,528 F
$6,052 U
$6,052 F
$6,528 U
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