The following standards for variable manufacturing overhead have been established for a company that makes only one product: Solution Hi, Please find the detailed answer as follows: Variable Overhead Rate Variance = Actual Hours *(Actual Variable Overhead Rate - Standard Variable Overhead Rate) = 9300*(95790/9300 - 10.65) = 3255 (Favorable) Answer is 3255 (Favorable). Thanks. .

1. The following standards for variable manufacturing overhead have been established for a
company that makes only one product:
The following standards for variable manufacturing overhead have been established for a
company that makes only one product:
Solution
Hi,
Please find the detailed answer as follows:
Variable Overhead Rate Variance = Actual Hours *(Actual Variable Overhead Rate -
Standard Variable Overhead Rate) = 9300*(95790/9300 - 10.65) = 3255 (Favorable)
Answer is 3255 (Favorable).
Thanks.