The following data have been provided by Furr Corporation: Budgeted production 7,000motorsStandard machine-hours per motor 8.6machine-hoursStandard indirect labor rate$7.10per machine-hourStandard power rate$1.40per machine-hour    Actual production 7,300motorsActual machine-hours (total) 62,140machine-hoursActual indirect labor cost (total)$408,340 Actual power cost (total)$94,989 Indirect labor and power are both elements of variable manufacturing overhead.The variable overhead rate variance for power is closest to:

A. $896 F
B. $7,993 U
C. $7,097 U
D. $7,097 F


Answer: B

Business

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