Kizspy | Question: 30
(Choose 1 answer)
Servantez Manufacturing Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company's cost formula for variable overhead is USD9.50 per MH. During the month, the actual total variable overhead was USD51,300 and the actual level of activity for the period was 5,700 MHs. What was the variable overhead rate variance for the month?
A. USD2,850 favorable
B. USD300 unfavorable
C. USD2,850 unfavorable
D. USD300 favorable
E. None of these
