The following data have been provided by Augustave Corporation: Budgeted product

Question

The following data have been provided by Augustave Corporation: Budgeted production ...............6.300 motors Standard machine-hours per motor.... 6.9 machine-hours Standard Indirect labor rate.......$4.50 per machine-hour Standard power rate...............$2.10 per machine-hour Actual production.........6,500 motors Actual machine-hours (total).... 44,170 machine hours Actual indirect labor (total)......... $194,418 Actual power (total)...........$89,169 Indirect labor and power are both elements of variable manufacturing overhead. The variable overhead rate variance for power is closest to: 1. $1.428F 2. $5,016F 3. $5,016U 4. $3,588F

Explanation / Answer

variable rate variance = ( SR ? AR )

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