Reenu Company manufactures wigs out of used dental floss. The variable cost standards for wig production developed by Reenu are as follows: Variable overhead at Reenu is based on direct labor-hours. The actual results for the month of October were as follows:
-What is Reenu's variable overhead rate variance for October?

Question

Reenu Company manufactures wigs out of used dental floss. The variable cost standards for wig production developed by Reenu are as follows:  Variable overhead at Reenu is based on direct labor-hours. The actual results for the month of October were as follows: 
-What is Reenu's variable overhead rate variance for October?

Quizplus · Accepted Answer

Reenu's variable overhead rate variance for October is $3,400 favorable. This is because the actual variable overhead rate was lower than the budgeted variable overhead rate.

Reenu Company Manufactures Wigs Out of Used Dental Floss