Juhasz Corporation makes a product with the following standards for direct labor and variable overhead: Standard Quantity or HoursStandard Price or RateDirect labor 0.5hours$20.00per hourVariable overhead 0.5hours$4.00per hourIn August the company produced 7,900 units using 4,080 direct labor-hours. The actual variable overhead cost was $15,096. The company applies variable overhead on the basis of direct labor-hours.The variable overhead rate variance for August is:

A. $1,185 F
B. $1,224 F
C. $1,185 U
D. $1,224 U


Answer: B

Business

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