Question
The following standards for variable manufacturing overhead have been established for a company that makes only one product: Standard hours per unit of output 1.2
The following standards for variable manufacturing overhead have been established for a company that makes only one product:
| Standard hours per unit of output | 1.2 | hours |
|---|---|---|
| Standard variable overhead rate | $19.80 | per hour |
The following data pertain to operations for the last month:
| Actual hours | 2,100 | hours |
|---|---|---|
| Actual total variable manufacturing overhead cost | $40,740 | |
| Actual output | 1,600 | units |
What is the variable overhead rate variance for the month?
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Intermediate Accounting
Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones
11th edition
978-0538467087, 9781111781262, 538467088, 1111781265, 978-0324659139
