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 8.1

The following standards for variable manufacturing overhead have been established for a company that makes only one product:

Standard hours per unit of output 8.1 hours
Standard variable overhead rate $ 14.85 per hour

The following data pertain to operations for the last month:

Actual hours 8,600 hours
Actual total variable manufacturing overhead cost $ 130,720
Actual output 1,000 units

What is the variable overhead rate variance for the month?

Multiple Choice

  • $3,010 F

  • $10,435 U

  • $3,010 U

  • $10,435 F

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