A manufacturing company that has only one product has established the following standards for its...
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Accounting
A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its variable manufacturing overhead standards on direct labor-hours.
| Standard hours per unit of output | 4.50 | DLHs | |
| Standard variable overhead rate | $ | 11.52 | per DLH |
The following data pertain to operations for the last month:
| Actual direct labor-hours | 8,900 | DLHs | |
| Actual total variable manufacturing overhead cost | $ | 95,920 | |
| Actual output | 1,800 | units | |
What is the variable overhead rate variance for the month?
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$6,889 F
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$6,889 U
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$6,608 U
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$6,608 F
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