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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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