Berends Corporation makes a product with the following standard costs: The company reported the following results concerning this product in April. 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 April is:

Question

Berends Corporation makes a product with the following standard costs:  The company reported the following results concerning this product in April.  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 April is:

Quizplus · Accepted Answer

Variable overhead rate variance = (AH × AR)− (AH × SR)
= ($6,912)− (2,560 hours × $3.00 per hour)
= $6,912 − $7,680
= $768 F

Berends Corporation Makes a Product with the Following Standard Costs