Nitrol Corporation Manufactures Brass Vases Using a Standard Cost System

Multiple Choice

Nitrol Corporation manufactures brass vases using a standard cost system with standard machine-hours as the activity base for overhead. The following information relates to vase production at Nitrol for last year: The standard machine-hours per vase is 1.25. Last year Nitrol produced 84,000 vases. What was Nitrol's variable overhead rate variance for last year?

A) $1,000 Favorable
B) $1,060 Unfavorable
C) $2,060 Unfavorable
D) $9,500 Unfavorable