25 Viger Corporation has a standard cost system in which it applies machine-hour

Question

25 Viger Corporation has a standard cost system in which it applies machine-hours (MHs, The company has provided the following data for the most recent month has a standard cost system in which it applies manufacturing overhead to products on the basis of standard MHs) The company has provided the following data for the most recent month 8,700 MHs 8,900 MHs Budgeted level of activity Actual level of activity Standard variable manufacturing overhead rate Actual total variable manufacturing overhead s 7.40 per MH $63,360 What was the variable overhead rate variance for the month?

Explanation / Answer

Answer

2500 favorable

variable overhead rate variance = AH - ( AR - SR )

= AH * AR - AH * SR

= 63360 - ( 8900 * 7.40 )

= 63360 - 65860

= 2500 favorable

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.