The following standards for variable manufacturing overhead have been established for a company that makes only one product: The following data pertain to operations for the last month:
-What is the variable overhead rate variance for the month?
A)$3,721 F
B)$3,721 U
C)$3,440 F
D)$3,440 U

Question

The following standards for variable manufacturing overhead have been established for a company that makes only one product:  The following data pertain to operations for the last month: 
-What is the variable overhead rate variance for the month?
A)$3,721 F 
B)$3,721 U 
C)$3,440 F 
D)$3,440 U

Quizplus · Accepted Answer

Variable overhead rate variance = (AH F1F1F1S1F1F1F10 AR)- (AH F1F1F1S1F1F1F10 SR)
= $95,890 - (8,600 actual hours F1F1F1S1F1F1F10 $11.55 per hour)
= $95,890 - $99,330 = $3,440 F

The Following Standards for Variable Manufacturing Overhead Have Been Established