The Richie Company uses a standard costing system in which variable manufacturing overhead is assigned to production on the basis of the number of machine setups. Data for the month of October include the following:
• Variable manufacturing overhead cost incurred: $38,934
• Total variable manufacturing overhead variance: $5,340 favorable
• Standard machine setups allowed for actual production: 2,820 setups
• Actual machine setups incurred: 2,750 setups
The standard variable overhead rate per machine setup is:
A. $15.70
B. $16.10
C. $11.95
D. $14.16