Answer:
Manufacturing overhead rate variance= $3,741 unfavorable
Explanation:
Giving the following information:
The standard variable overhead rate is $6.10 per direct labor-hour.
During the most recent month, 1,300 units of product D80D were made and 8,700 direct labor-hours were worked. The actual variable overhead incurred was $56,770
To calculate the variable overhead rate variance, we need to use the following formula:
Manufacturing overhead rate variance= (standard rate - actual rate)* actual quantity
actual rate= 56,770/8,700= $6.53 per hour
Manufacturing overhead rate variance= (6.1 - 6.53)*8,700
Manufacturing overhead rate variance= $3,741 unfavorable
