The Chilton Corporation specializes in manufacturing one type of desk lamp.Chilton allocates variable manufacturing overhead costs on the basis of machine hours.Chilton budgeted .5 machine hours per lamp and allocates overhead at a rate of $1.80 per machine hour.Last year Chilton manufactured 23,000 lamps,used 13,800 machine hours and incurred actual overhead costs of $15,180.
What was Chilton's variable manufacturing overhead rate variance last year?

Question

Quizplus · Accepted Answer

C)
Variable MOH rate variance = Actual Hours × (Actual Rate - Standard Rate)
$9,660 F = 13,800 × ($1.10 - $1.80)

The Chilton Corporation Specializes in Manufacturing One Type of Desk