Final answer:
Cannot compute variable overhead rate variance without the necessary details, which include actual variable overhead costs, standard overhead rate, and actual units produced.
Step-by-step explanation:
To compute variable overhead rate variance, we need to compare the actual variable overhead rate with the standard variable overhead rate and calculate the difference.
The formula to calculate the variable overhead rate variance is:
Variable Overhead Rate Variance = (Actual Variable Overhead Rate - Standard Variable Overhead Rate) * Actual Hours
However, the question does not provide the actual and standard variable overhead rates or the actual hours. Therefore, we cannot compute the variable overhead rate variance with the given information.
The calculation of variable overhead rate variance is not provided with the necessary details to determine the correct variance from the given options A) $2,450.60 B) $3,290.40 C) $2,688.60 D) $3,028.40. This business concept is key in cost accounting and managing expenses.
To calculate this variance, we would need to know the actual variable overhead costs incurred, the standard variable overhead rate, and the number of actual units produced. The formula for variable overhead rate variance is (Actual Hours Worked x Standard Rate) – Actual Variable Overhead Incurred. Without specific figures for these inputs, there is not enough information to compute the variance. In general, understanding how to manipulate these figures is important for diagnosing business health and efficiency.