What is the variable overhead rate variance

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Albertville applies overhead based on direct labor hours. The variable overhead standard is 2 hours at $12 per hour. During July, Albertville spent $116,700 for variable overhead. 8,890 labor hours were used to produce 4,700 units. What is the variable overhead rate variance?

a. $3,200 unfavorable

b. $6,120 unfavorable

c. $10,020 unfavorable

d. $3,200 favorable

Reference no: EM13825285

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