Sholette Manufacturing Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHS) at $7.00 per MH. During the month, the actual total variable manufacturing overhead was $42,250 and the actual level of activity for the period was 6,500 MHs. What was the variable overhead rate variance for the month? A. $464 Favorable B. $464 Unfavorable C. $3,250 Unfavorable D. $3,250 Favorable.

Sholette Manufacturing Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHS) at $7.00 per MH. During the month, the actual total variable manufacturing overhead was $42,250 and the actual level of activity for the period was 6,500 MHs. What was the variable overhead rate variance for the month? A. $464 Favorable B. $464 Unfavorable C. $3,250 Unfavorable D. $3,250 Favorable.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 9EB: Eagle Inc. uses a standard cost system. During the most recent period, the company manufactured...

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