Kronstedt Corporation

Kronstedt Corporation

Kronstedt 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:

Budget Level of Activity……. 6,100 MHs
Actual Level of Activity……. 6,300 MHs
Cost formula for variable overhead cost…. $6.70 per MH
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?
A. $710 unfavorable
B. $1,340 unfavorable
C. $630 favorable
D. $3,000 unfavorable

Is this the question you were looking for? If so, place your order here to get started!