Leshem Incorporated makes a single product-an electrical motor used in many long-haul trucks. The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Budgeted variable manufacturing overhead$52,920     Budgeted production (a) 20,000unitsStandard hours per unit (b) 0.70machine-hoursBudgeted hours (a) × (b) 14,000machine-hours    Actual production (a) 16,000unitsStandard hours per unit (b) 0.70machine-hoursStandard hours allowed for the actual production (a) × (b) 11,200machine-hours    Actual variable manufacturing overhead$30,784 Actual hours 10,400machine-hours?The variable overhead rate variance is:

A. $8,528 F
B. $8,528 U
C. $9,184 F
D. $9,184 U


Answer: A

Business

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