Venus Company Applies Overhead Based on Direct Labor Hours

question 34

Multiple Choice

Venus Company applies overhead based on direct labor hours.The variable overhead standard is 10 hours at $3.50 per hour.During October,Venus Company spent $157,600 for variable overhead.47,440 labor hours were used to produce 4,800 units.What is the variable overhead rate variance?

• A)$8,440 favorable
• B)$1,960 favorable
• C)$10,400 favorable
• D)$1,960 unfavorable

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Definitions:

Derivative Action

A lawsuit brought by a corporation shareholder on behalf of the corporation against a third party.

Suing Shareholder

A stockholder who initiates a legal action against a corporation, often for actions that are believed to harm the company or its shareholders.

Reasonable Attorney's Fees

The amount of legal fees deemed fair for the work performed, often recoverable from the opposing party in litigation under certain conditions.

Strike Suit

A lawsuit with weak merits, often filed by a shareholder against a corporation's executives, hoping for a settlement.