Viger 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:
- Budgeted level of activity: 7,900 MHs
- Actual level of activity: 8,100 MHs
- Standard variable manufacturing overhead rate: $6.60 per MH
- Actual total variable manufacturing overhead: $51,200
What was the variable overhead rate variance for the month?
Multiple Choice
A) $1,434 Favorable
B) $1,320 Unfavorable
C) $940 Favorable
D) $2,260 Favorable