Amirault Manufacturing Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) at $4.00 per MH. During the month, the actual total variable manufacturing overhead was $18,040 and the actual level of activity for the period was 4,100 MHs. What was the variable overhead rate variance for the month?
A. $410 Favorable
B. $410 Unfavorable
C. $1,640 Favorable
D. $1,640 Unfavorable
Answer: D
Business
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