Mzimba Sofa Company Has Developed the Following Manufacturing Overhead Standards

question 51

Multiple Choice

Mzimba Sofa Company has developed the following manufacturing overhead standards for its sofa production. Manufacturing overhead at Mzimba is applied to production on the basis of standard machine-hours. The above standards were based on an expected annual volume of 20,000 sofas. The actual results last year were as follows:
-What was Mzimba's variable overhead rate variance?

• A) $8,514 favorable
• B) $8,766 unfavorable
• C) $17,280 unfavorable
• D) $54,846 unfavorable