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Juhasz Corporation makes a product with the following standards for direct labor and variable overhead: In August the company produced 7,900 units using 4,080 direct labor-hours. The actual variable overhead cost was $15,096. The company applies variable overhead on the basis of direct labor-hours. The variable overhead rate variance for August is:

Respuesta :

Answer: 520U

Explanation:

From the question, we are informed that in August the company produced 7,900 units using 4,080 direct labor-hours and that the actual variable overhead cost was $15,096.

The variable overhead rate variance for August will be:

= 4 × (4080-7900 × 0.5)

= 520 Underapplied

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