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 MH.During the month,the actual total variable manufacturing overhead was $18,040 and the actual level of activity for the period was 4,100 MHs.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

Quizplus · Accepted Answer

Variable overhead rate variance = (AH × AR) - (AH × SR)
= $18,040 - (4,100 hours × $4.00 per hour)
= $18,040 - $16,400
= $1,640 U

Amirault Manufacturing Corporation Has a Standard Cost System in Which