Majer Corporation Makes a Product with the Following Standard Costs

question 140

Multiple Choice

Majer Corporation makes a product with the following standard costs: The company reported the following results concerning this product in February.
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 rate variance for February is:

• A) $191 U
• B) $191 F
• C) $196 U
• D) $196 F

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Definitions:

Automatic Stabilizer

Economic policies and programs, like unemployment benefits, that automatically adjust to counteract economic fluctuations without additional government action.

Unemployment Compensation

Government-provided financial assistance to individuals who are unemployed and meet certain eligibility requirements.

Automatic Stabilizer

Economic policies and programs, such as unemployment insurance and progressive taxes, that automatically help stabilize an economy by reducing the severity of economic fluctuations without additional government intervention.

Disposable Income

The residual financial power of households for savings and consumption post the subtraction of income taxes.