Doogan Corporation Makes a Product with the Following Standard Costs

question 133

Multiple Choice

Doogan Corporation makes a product with the following standard costs: The company produced 5,200 units in January using 39,310 grams of direct material and 2,380 direct labor-hours. During the month, the company purchased 44,400 grams of the direct material at $1.70 per gram. The actual direct labor rate was $19.30 per hour and the actual variable overhead rate was $6.80 per hour.
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 January is:

• A) $1,496 F
• B) $1,496 U
• C) $1,540 U
• D) $1,540 F

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Definitions:

Contracts

Legally binding agreements between two or more parties.

Individualism Versus Collectivism

A cultural dimension that reflects the degree to which people in a society are integrated into groups or expected to be independent and self-reliant.

Individual Freedoms

Rights and liberties that allow individuals to express themselves, make choices, and pursue their interests without undue interference.

Group Interests

Collective goals or objectives pursued by a group of individuals who share a common interest or purpose.