Handerson Corporation Makes a Product with the Following Standard Costs

question 171

Multiple Choice

Handerson Corporation makes a product with the following standard costs: The company reported the following results concerning this product in August.
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 efficiency variance for August is:

• A) $720 U
• B) $720 F
• C) $780 U
• D) $780 F