A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its variable manufacturing overhead standards on direct labor-hours. The following data pertain to operations for the last month:
What is the variable overhead rate variance for the month?
A) $3,786 Unfavorable
B) $3,505 Unfavorable
C) $3,786 Favorable
D) $3,505 Favorable

Question

A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its variable manufacturing overhead standards on direct labor-hours.  The following data pertain to operations for the last month:
 What is the variable overhead rate variance for the month?
A) $3,786 Unfavorable 
B) $3,505 Unfavorable 
C) $3,786 Favorable 
D) $3,505 Favorable

Quizplus · Accepted Answer

The Answer of A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its variable manufacturing overhead standards on direct labor-hours.  The following data pertain to operations for the last month:
 What is the variable overhead rate variance for the month?
A) $3,786 Unfavorable 
B) $3,505 Unfavorable 
C) $3,786 Favorable 
D) $3,505 Favorable

A Manufacturing Company That Has Only One Product Has Established