Viger Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). Th 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 9,100 MHs 9,300 MHs $ 7.80 per MH $69,920 What was the variable overhead rate variance for the month?
Viger Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). Th 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 9,100 MHs 9,300 MHs $ 7.80 per MH $69,920 What was the variable overhead rate variance for the month?
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 12PA: ABC Inc. spent a total of $48,000 on factory overhead. Of this, $28,000 was fixed overhead. ABC Inc....
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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![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
9,100 MHs
9,300 MHs
Standard variable manufacturing overhead rate
Actual total variable manufacturing overhead
$
7.80 per MH
$69,920
What was the variable overhead rate variance for the month?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff1fd60a6-e122-44a6-b63f-53f11d7f8fb8%2F58e9e6e0-acbc-4114-91ad-bebd727e11d3%2F5k5bjc_processed.png&w=3840&q=75)
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
9,100 MHs
9,300 MHs
Standard variable manufacturing overhead rate
Actual total variable manufacturing overhead
$
7.80 per MH
$69,920
What was the variable overhead rate variance for the month?
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