Viger Corporation has a standard cost system in which it applies manufacturing o
ID: 2509275 • Letter: V
Question
Viger Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company has provided the following data for the most recent month:
What was the variable overhead rate variance for the month?
A. 1,360 U
B. 1,431 F
C. 960 F
D. 2,320 F
Budgeted level of activity 8,100 MHs Actual level of activity 8,300 MHs Standard variable manufacturing overhead rate $ 6.80 per MH Actual total variable manufacturing overhead $ 54,120Explanation / Answer
D. 2,320 F
Variable overhead rate variance = AH (AR - SR) = AH × AR - AH × SR
= $54,120 - (8,300 hours × $6.80 per hour)
= $2,320 F
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