Oddo Corporation makes a product with the following standard costs: The company reported the following results concerning this product in December. The company applies variable overhead on the basis of direct labor-hours.The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for December is:

Question

Oddo Corporation makes a product with the following standard costs:  The company reported the following results concerning this product in December.  The company applies variable overhead on the basis of direct labor-hours.The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for December is:

Quizplus · Accepted Answer

Variable overhead rate variance = AH × (AR - SR)
= 3, 160 hours × ($5.10 per hour - $5.00 per hour)
= 3, 160 hours × ($0.10 per hour)
= $316 U

Oddo Corporation Makes a Product with the Following Standard Costs