Cuda Manufacturing Corporation Uses a Standard Cost System with Machine-Hours

question 2

Multiple Choice

Cuda Manufacturing Corporation uses a standard cost system with machine-hours (MHs) as the activity base for overhead. The following information relates to Cuda's operations last year: What was Cuda's variable overhead rate variance?

• A)$6,000 Unfavorable
• B)$15,000 Favorable
• C)$20,000 Unfavorable
• D)$21,000 Favorable

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