Viger corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (mhs). the company has provided the following data for the most recent month: budgeted level of activity 8,900 mhs actual level of activity 9,100 mhs standard variable manufacturing overhead rate $ 7.60 per mh actual total variable manufacturing overhead $ 66,600 what was the variable overhead rate variance for the month?

The variable overhead rate variance for the month is $2,548 favorable

Explanation:

In this question, we use the formula of the variable overhead rate variance which is shown below:

= Actual level of activity × (Standard rate - Actual rate  )

= 9,100 × ($7.60 - $7.32)

= 9,100 × 0.28

= $2,548 favorable

The actual rate is not given in the question, so we have to compute by using the formula which is given below:

= Actual total variable manufacturing overhead ÷ Actual level of activity

= $66,600 ÷ 9,100

= $7.32

Hence, the variable overhead rate variance for the month is $2,548 favorable

and whats your questoin