Topeka Manufacturing Corporation uses a standard cost system with machine-hours as the activity base for overhead. The following information relates to production for last year:
Variable Fixed
Total budgeted overhead (at the denominator level of activity $60,000 ?
Total applied overhead $55,200 $115,000
Total actual overhead $ 54,500 $130,000
The standard machine-hours allowed for actual output during the year were 4,600.
The actual machine-hours incurred were 4,500 18 What was Topeka's VMOH Rate Variance?
A. $500 Favorable
B. $500Unfavorable
C. $1,200 Favorable
D. $1,200 Unfavorable
E. None of the above