Budgeted level of activity (MHs) ................................ . 6.100 Actual
ID: 2383818 • Letter: B
Question
Budgeted level of activity (MHs) ................................ . 6.100
Actual level of activity (MHs) ..................................... . 6,300
Cost formula for variable overhead cost (per MH).......... $6.70
Budgeted fIxed manufacturing overhead cost ............. .$42,000
Actual total variable overhead ..................................... $41,580
Actual total fIxed manufacturing overhead ................. .$45,000
What was the variable overhead rate variance for the month?
Explanation / Answer
Variable overhead rate variance = Actual total variable overhead
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