Question: A company applies overhead using machine hours and shows the following information. Compute the variable overhead variance. Actual hours of machine use 9,400 hours Standard

A company applies overhead using machine hours and shows the following information. Compute the variable overhead variance.

Actual hours of machine use 9,400 hours
Standard hours of machine use (for actual production) 10,000 hours
Actual variable overhead rate per machine hours $ 4.15
Standard variable overhead rate per machine hour $ 4.00

Multiple Choice

  • $3,900U.

  • $3,900F.

  • $990F.

  • $990U.

  • $2,490F.

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