A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. Variable manufacturing overhead standards are based on machine-hours.
|
Standard hours per unit of output
|
5.00
|
machine-hours
|
|
Standard variable overhead rate
|
$11.63
|
per machine-hour
|
The following data pertain to operations for the last month:
|
Actual hours
|
8,500
|
machine-hours
|
|
Actual total variable manufacturing overhead cost
|
$95,970
|
|
|
Actual output
|
1,600
|
units
|
What is the variable overhead rate variance for the month?