At Cady Corporation, maintenance is a variable overhead cost that is based on machine-hours. The performance report for June showed that actual maintenance costs totaled $9,600 and that the associated rate variance was $400 unfavorable. If 8,000 machine-hours were actually worked during June, the standard maintenance cost per machine-hour was:
A)$1.30 per MH
B)$1.25 per MH
C)$1.20 per MH
D)$1.15 per MH

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The Answer of At Cady Corporation, maintenance is a variable overhead cost that is based on machine-hours. The performance report for June showed that actual maintenance costs totaled $9,600 and that the associated rate variance was $400 unfavorable. If 8,000 machine-hours were actually worked during June, the standard maintenance cost per machine-hour was:
A)$1.30 per MH
B)$1.25 per MH
C)$1.20 per MH
D)$1.15 per MH

At Cady Corporation, Maintenance Is a Variable Overhead Cost That