At Cady Corporation, Maintenance Is a Variable Overhead Cost That

Multiple Choice

At Cady Corporation, maintenance is a variable overhead cost that is based on machine-hours. The performance report for June showed that actual maintenance costs totaled $9,600 and that the associated rate variance was $400 unfavorable. If 8,000 machine-hours were actually worked during June, the standard maintenance cost per machine-hour was:

A) $1.30 per MH
B) $1.25 per MH
C) $1.20 per MH
D) $1.15 per MH