Amirault Manufacturing Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) at $4.00 per machine-hours. During the month, the actual total variable manufacturing overhead was $18,040 and the actual level of activity for the period was 4,100 machine-hours. What was the variable overhead rate variance for the month?
A) $410 Favorable
B) $1,640 Unfavorable
C) $1,640 Favorable
D) $410 Unfavorable

Question

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The Answer of Amirault Manufacturing Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) at $4.00 per machine-hours. During the month, the actual total variable manufacturing overhead was $18,040 and the actual level of activity for the period was 4,100 machine-hours. What was the variable overhead rate variance for the month?
A) $410 Favorable
B) $1,640 Unfavorable
C) $1,640 Favorable
D) $410 Unfavorable

Amirault Manufacturing Corporation Has a Standard Cost System in Which