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A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. Variable manufacturing overhead standards are based on machine-hours. Standard hours per unit of output 4.50 machine-hours Standard variable overhead rate $11.52 per machine-hour
The following data pertain to operations for the last month:
Actual hours 8,900 machine-hours Actual total variable manufacturing overhead cost $95,920 Actual output 1,800 units
What is the variable overhead rate variance for the month?
Answers: 2
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