manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its variable manufacturing overhead standards on direct labor-hours.   Standard hours per unit of output 3.70 direct labor-hours Standard variable overhead rate $11.05 per direct labor-hour   The following data pertain to operations for the last month:   Actual direct labor-hours 9,000 direct labor-hours Actual total variable manufacturing overhead cost $ 95,830   Actual output 2,200 units   What is the variable overhead rate variance for the month

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 17P: Shinto Corp. uses a standard cost system and manufactures one product. The variable costs per...
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A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its variable manufacturing overhead standards on direct labor-hours.

 

Standard hours per unit of output 3.70 direct labor-hours
Standard variable overhead rate $11.05 per direct labor-hour

 

The following data pertain to operations for the last month:

 

Actual direct labor-hours 9,000 direct labor-hours
Actual total variable manufacturing overhead cost $ 95,830  
Actual output 2,200 units

 

What is the variable overhead rate variance for the month?

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