Standard cost system, Bovine Incorporated has a standard

Standard cost system

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Reference no: EM131212917

Bovine Incorporated 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 $7.33 per MH. The company had budgeted its fixed manufacturing overhead cost at $47,200 for the month. During the month, the actual total variable overhead was $57,300 and the actual total fixed manufacturing overhead was $44,300. The actual level of activity for the period was 9,000 MHs. What was the total of the variable overhead rate and fixed manufacturing overhead budget variances for the month? $8,670 favorable $11,570 favorable $11,570 unfavorable $8,670 unfavorable

Reference no: EM131212917

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