Brummer Corporation Makes a Product Whose Variable Overhead Standards Are

question 112

Multiple Choice

Brummer Corporation makes a product whose variable overhead standards are based on direct labor-hours. The quantity standard is 0.1 hours per unit. The variable overhead rate standard is $8.00 per hour. In January the company produced 8,700 units using 910 direct labor-hours. The actual variable overhead rate was $7.90 per hour. The variable overhead rate variance for January is:

• A) $91 F
• B) $87 F
• C) $91 U
• D) $87 U

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Definitions:

Target Market Segments

Specific groups of consumers targeted by a company's marketing efforts, identified by shared characteristics.

Initial Launch

The first introduction of a product or service to the market, marking the beginning of its commercial journey and consumer availability.

Long-Range Strategies

Strategies planned to achieve goals or objectives that are expected to be realized over an extended period, often several years ahead.

Competitive Move

An action taken by a company to strengthen its position in the market relative to its competitors.