Standard variable overhead rate per machine setup

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Reference no: EM131208016

The Richie Company uses a standard costing system in which variable manufacturing overhead is assigned to production on the basis of the number of machine setups. Data for the month of October include the following:

• Variable manufacturing overhead cost incurred: $38,934

• Total variable manufacturing overhead variance: $5,340 favorable

• Standard machine setups allowed for actual production: 2,820 setups

• Actual machine setups incurred: 2,750 setups

The standard variable overhead rate per machine setup is:

A. $15.70

B. $16.10

C. $11.95

D. $14.16

Reference no: EM131208016

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