A manufacturing company that has only one product

by | Mar 18, 2020 | Uncategorized

  

A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. Variable manufacturing overhead standards are based on machine-hours.

Standard hours per unit of output 5.00 machine-hours
Standard variable overhead rate $11.63 per machine-hour

The following data pertain to operations for the last month:

Actual hours 8,500 machine-hours
Actual total variable manufacturing overhead cost $95,970
Actual output 1,600 units

What is the variable overhead rate variance for the month?

need calculation breakdown 
  

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