Valera Corporation makes a product with the following standards for labor and va

Question

Valera Corporation makes a product with the following standards for labor and variable overhead Direct 1abor Variable overhead 0.4 hours 8.4 hours $21.00 per hour $ 6.00 per hour $8.40 $2.40 The company budgeted for production of 5,300 units in July, but actual production was 5,400 units. The hour. The company applies varsable overhead on the basis of direct labor-hours company used 2130 drect labor-hours to produce tris output The actusl varlabie ovesthead rate was 56 The variable overhead rate variance for July Multiple Choice $213 F $216 U $216 F 213 U

Explanation / Answer

Variable overhead rate variance = 2130*(6.1-6)= 213 U Ootion 4 is correct

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