Chapter 1, Problem 1.3aDIE

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 $8.00 per MH. During the month, the actual total variable manufacturing overhead was $22500 and the actual level of activity for the period was 3000 MHs. What was the variable overhead rate variance for the month? • (a) $188, favorable • • (b) $188, unfavorable (c) $1500, unfavorable ⚫ (d) $1500, favorable

Don't want incorrect solution

The firm's current ration and acid- test ratio??