A manufacturing company that has only one product has established the following standards for its...
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Accounting
A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its variable manufacturing overhead standards on direct labor-hours.
Standard hours per unit of output
3.90
DLHs
Standard variable overhead rate
$
11.25
per DLH
The following data pertain to operations for the last month:
Actual direct labor-hours
8,800
DLHs
Actual total variable manufacturing overhead cost
$
95,850
Actual output
2,200
units
What is the variable overhead rate variance for the month?
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