What was the variable overhead rate variance


Kronstedt Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company has provided the following data for the most recent month:

  • Budget Level of Activity....... 6,100 MHs
  • Actual Level of Activity....... 6,300 MHs
  • Cost formula for variable overhead cost.... $6.70 per MH
  • Budgeted fixed manufacturing overhead cost.... $42,000
  • Actual Total variable overhead.......... $41,580
  • Actual total fixed manufacturing overhead.... $45,000

What was the variable overhead rate variance for the month?

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Accounting Basics: What was the variable overhead rate variance
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