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Question - The following standards for variable manufacturing overhead have been established for a company that makes only one product:
Standard Hrs per unit of output - 5.6Hrs
Standard Variable OH Rate - $12 per hour
The following data pertain to operations for the last month:
Actual hours = 2,600 hrs.
Actual Total variable manufacturing OH cost = $31,330
Actual output = 400 units
Required - What is the variable overhead rate variance for the month?
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