The following standards for variable manufacturing overhead have been established for a company that makes only one product: Standard hours per unit of output 1.2hoursStandard variable overhead rate$19.80per hourThe following data pertain to operations for the last month: Actual hours 2,100hoursActual total variable manufacturing overhead cost$40,740 Actual output 1,600unitsWhat is the variable overhead rate variance for the month?

A. $768 U
B. $2,724 U
C. $840 F
D. $3,492 U


Answer: C

Business

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