The following standards for variable manufacturing overhead have been established for a company that makes only one product:
Standard hours per unit of output 4.50 hours
Standard variable overhead rate $11.52 per hour
The following data pertain to operations for the last month:
Actual hours 8,900 hours
Actual total labor cost $95,920
Actual output 1,800 units
What is the variable overhead rate variance for the month?
$6,889 F $6,608 U $6,608 F or $6,889 U