The Chase Company Uses a Standard Cost System in Which

Multiple Choice

The Chase Company uses a standard cost system in which manufacturing overhead costs are applied to products on the basis of standard machine-hours. For November, the company's flexible budget for manufacturing overhead showed the following total budgeted costs at the denominator activity level of 40,000 machine-hours: During November 42,000 machine-hours were used to complete 13,200 units of product with the following actual overhead costs: The standard time allowed to complete one unit of product is 3.6 machine-hours.
-The variable overhead rate variance for maintenance cost for November was:

A) $7,420 unfavorable
B) $2,400 favorable
C) $9,820 unfavorable
D) $5,620 unfavorable