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maw [93]
3 years ago
13

Brummer Corporation makes a product whose variable overhead standards are based on direct labor-hours. The quantity standard is

0.1 hours per unit. The variable overhead rate standard is $8.00 per hour. In January the company produced 8,700 units using 910 direct labor-hours. The actual variable overhead rate was $7.90 per hour. The variable overhead rate variance for January is:
Business
1 answer:
IRISSAK [1]3 years ago
6 0

Answer:

$91 favorable

Explanation:

Variable overhead rate variance = (Standard variable overhead rate - Actual variable overhead rate) * Actual hour worked

Therefore, we have:

Variable overhead rate variance = ($8.00 - $7.90) * 910 = $91 favorable

Note: the variable overhead rate variance is said to be favorable becasue standard variable overhead rate is geater than the actual variable overhead rate.

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4 0
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Please answer if you know :)
vekshin1

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Mark me as brain list

Explanation:

The answer should be B

Hope it helped

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