Use the information below to answer the following question(s).
Michelle Inc. uses a level 4-variance analysis of its manufacturing overhead costs, and has the following results for April.
A. Budgeted direct labour-hours per unit is used to allocate variable manufacturing overhead.
B. Budgeted amounts for April 2012 are:
C. Actual amounts for April 2012 are:

-What is the variable manufacturing overhead rate variance?

Question

Use the information below to answer the following question(s).
Michelle Inc. uses a level 4-variance analysis of its manufacturing overhead costs, and has the following results for April.
A. Budgeted direct labour-hours per unit is used to allocate variable manufacturing overhead.
  B. Budgeted amounts for April 2012 are:
  C. Actual amounts for April 2012 are:
 
-What is the variable manufacturing overhead rate variance?

Quizplus · Accepted Answer

The variable manufacturing overhead rate variance is calculated by comparing the actual overhead costs to the expected costs based on the standard rate. The given options suggest that the variance is $20,000 unfavourable, indicating that the actual costs exceeded the expected costs by this amount.

Use the Information Below to Answer the Following Question(s)