Reference no: EM132996577

The following data have been provided by Mathews Corporation:

Budgeted production                                6,900 units
Standard machine-hours per unit                9.4 machine-hours
Standard lubricants rate                           $1.20per machine-hour
Standard supplies rate                             $1.00per machine-hour
Actual production                                   7,000 units
Actual machine-hours (total)                    66,230 machine-hours
Actual lubricants cost (total)                    $78,100
Actual supplies cost (total)                      $66,536

Problem 1: Lubricants and supplies are both elements of variable manufacturing overhead. The variable overhead rate variance for lubricants is closest to:

a) $860 F
b) $1,376 F
c) $516 U
d) $1,376 U