manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its variable manufacturing overhead standards on direct labor-hours. Standard hours per unit of output 3.70 direct labor-hours Standard variable overhead rate $11.05 per direct labor-hour The following data pertain to operations for the last month: Actual direct labor-hours 9,000 direct labor-hours Actual total variable manufacturing overhead cost $ 95,830 Actual output 2,200 units What is the variable overhead rate variance for the month
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A manufacturing company that has only one product has established the following standards for its variable manufacturing
Standard hours per unit of output | 3.70 | direct labor-hours |
---|---|---|
Standard variable overhead rate | $11.05 | per direct labor-hour |
The following data pertain to operations for the last month:
Actual direct labor-hours | 9,000 | direct labor-hours |
---|---|---|
Actual total variable |
$ 95,830 | |
Actual output | 2,200 | units |
What is the variable overhead rate variance for the month?
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