The following standards for variable manufacturing overhead have been established for a company that makes only one product: The following data pertain to operations for the last month: What is the variable overhead rate variance for the month?
A)$1,200 F
B)$9,625 F
C)$8,425 F
D)$990 U

Question

The following standards for variable manufacturing overhead have been established for a company that makes only one product:  The following data pertain to operations for the last month:  What is the variable overhead rate variance for the month?
A)$1,200 F 
B)$9,625 F 
C)$8,425 F 
D)$990 U

Quizplus · Accepted Answer

Variable overhead rate variance = AH (AR - SR)= AH F1F1F1S1F1F1F10 AR - AH F1F1F1S1F1F1F10 SR
= $45,375 - (3,300 hours F1F1F1S1F1F1F10 $13.45 per hour)
= $45,375 - $44,385 = $990 U

The Following Standards for Variable Manufacturing Overhead Have Been Established