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:

Embryonic Period

The period from 2 to 8 weeks after fertilization, during which the major organs and structures of the organism develop.

Zygote

Cell resulting from the uniting of the ovum and sperm.

Umbilical Cord

The flexible cordlike structure connecting a fetus to the placenta, delivering nutrients and oxygen and removing waste.

Psychological Closeness

The perception of being emotionally intimate or connected with another person or group.