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The following data have been provided by Petri Corporation: Budgeted production 7,800 motors Standard machine-hours per motor 6.9 machine-hours Standard indirect labor rate $2.50 per
The following data have been provided by Petri Corporation:
Budgeted production | 7,800 | motors |
Standard machine-hours per motor | 6.9 | machine-hours |
Standard indirect labor rate | $2.50 | per machine-hour |
Standard power rate | $2.00 | per machine-hour |
Actual production | 8,000 | motors |
Actual machine-hours (total) | 54,510 | machine-hours |
Actual indirect labor cost (total) | $132,685 | |
Actual power cost (total) | $108,158 |
Indirect labor and power are both elements of variable manufacturing overhead. The variable overhead rate variance for power is closest to:
$1,380 F
$862 F
$2,242 F
$2,242 U
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