Servantez Manufacturing Corporation Has a Standard Cost System in Which

question 5

Multiple Choice

Servantez Manufacturing Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) . The company's cost formula for variable overhead is $9.50 per MH. During the month, the actual total variable overhead was $51,300 and the actual level of activity for the period was 5,700 MHs. What was the variable overhead rate variance for the month?

• A) $2,850 favorable
• B) $300 unfavorable
• C) $2,850 unfavorable
• D) $300 favorable

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