Kartman Corporation makes a product with the following standard costs:

Standard Quantity Standard Price Standard Cost/Unit
Direct materials 6.7 pounds $ 7.20 per pound $ 48.24
Direct labor 0.6hours $26.00 per hour $ 15.60
Variable overhead 0.6 hours $4.20 per hour $ 2.52

In June the company's budgeted production was 5,200 units but the actual production was 5,300 units. The company used 23,950 pounds of the direct material and 2,470 direct labor-hours to produce this output. During the month, the company purchased 27,200 pounds of the direct material at a cost of $188,180. The actual direct labor cost was $58,821 and the actual variable overhead cost was $13,431.

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The variable overhead rate variance for June is:

variable overhead rate variance  $ 6,297  favourable

Explanation:          

The variable overhead rate variance is the difference between the actual variable overhead cost and the actual hours multiplied by the standard variable overhead rate.        

                                                                                                 $

2740 hours should have cost (2740×$4.20)                     19728

but did cost                                                                         13,431.

variable overhead rate variance                                       6,297  favourable

the u.s. census bureau produces data on the population and economy nationwide. it can you to analyze the kind of people living in your neighborhood. it does not show you the market of people willing to buy your product or an existing market for your product. that will require more market research. the census bureau only gives you an insight to the demographics in your area.