Harry Company's Standard Variable Overhead Rate Is $6 Per Direct

question 32

Multiple Choice

Harry Company's standard variable overhead rate is $6 per direct labor hour, and each unit requires 2 standard direct labor hours. During March, Harry recorded 6,000 actual direct labor hours, $37,000 actual variable overhead costs, and 2,900 units of product manufactured. What is the total variable overhead variance for March for Harry?

• A) $1,200 U
• B) $600 U
• C) $1,000 U
• D) $2,200 U

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Definitions:

Secondary Effects

Unintended consequences of economic actions, which may manifest in areas not directly targeted by the initial action.

Unintended Consequences

Outcomes that occur as a result of actions or policies that were not anticipated or intended by the actors involved.

Economic Change

Shifts in economic conditions, such as growth, recession, or structural adjustments, affecting markets and societies.

Free Lunch

An expression indicating that it is impossible to get something for nothing, underscoring the idea that every choice has a cost.