At Eady Corporation, Maintenance Is a Variable Overhead Cost That

question 317

Multiple Choice

At Eady Corporation, maintenance is a variable overhead cost that is based on machine-hours. The performance report for July showed that actual maintenance costs totaled $9,870 and that the associated rate variance was $300 unfavorable. If 5,500 machine-hours were actually worked during July, the standard maintenance cost per machine-hour was:

• A) $1.79 per machine-hour
• B) $1.85 per machine-hour
• C) $1.74 per machine-hour
• D) $1.90 per machine-hour

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