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: Budgeted level of activity Actual level of activity Standard variable manufacturing overhead rate Actual total variable manufacturing overhead 8,600 MHS 8,800 MHS $ 7.30 per MH $61,770 What was the variable overhead rate variance for the month? Multiple Choice $1,425 Favorable $1.010 Favorable $1.460 Unfavorable $2.470 Favorable

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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9q-4
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:
Budgeted level of activity
Actual level of activity
Standard variable manufacturing overhead rate
Actual total variable manufacturing overhead
8,600 MHS
8,800 MHS
$ 7.30 per MH
$61,770
What was the variable overhead rate variance for the month?
Multiple Choice
$1.425 Favorable
$1,010 Favorable
$1.460 Unfavorable
$2470 Favorable
Transcribed Image Text: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: Budgeted level of activity Actual level of activity Standard variable manufacturing overhead rate Actual total variable manufacturing overhead 8,600 MHS 8,800 MHS $ 7.30 per MH $61,770 What was the variable overhead rate variance for the month? Multiple Choice $1.425 Favorable $1,010 Favorable $1.460 Unfavorable $2470 Favorable
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