Desue Corporation makes a product with the following standards for labor and variable overhead:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost Per Unit
Direct labor	0.1 hours	$19.00 per hour	$1.90
Variable overhead	0.1 hours	$7.00 per hour	$0.70

The company budgeted for production of 6,500 units in December, but actual production was 6,300 units. The company used 610 direct labor hours to produce this output. The actual variable overhead rate was $6.40 per hour. The company applies variable overhead on the basis of direct labor hours.

The variable overhead rate variance for December is:

		$378 F
		$366 F
		$366 U
		$378 U

Answer rating: 100% (QA)

The variable overhead rate variance for December is The correct option is 366 F Variable ... View the full answer