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A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. Variable manufacturing overhead standards are based on machine-hours.
Standard hours per unit of output
5.00
machine-hours
Standard variable overhead rate
$11.63
per machine-hour
The following data pertain to operations for the last month:
Actual hours
8,500
Actual total variable manufacturing overhead cost
$95,970
Actual output
1,600
units
What is the variable overhead rate variance for the month?
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