Handerson Corporation Makes a Product with the Following Standard Costs

question 13

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 labor efficiency variance for August is:

• A) $2,400 U
• B) $2,400 F
• C) $2,352 F
• D) $2,352 U

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Definitions:

Kaiser Shipyards

A collection of shipyards in the United States known for their rapid production of Liberty ships and other naval vessels during World War II, significantly contributing to the Allied war effort.

Liberty ships

A class of cargo ships built in the United States during World War II, designed for rapid construction to support the Allied war effort.

Stalingrad

The site of a significant and brutal battle during World War II between Soviet and Axis forces, known for its strategic importance and the immense loss of life.

Eastern Europe

A region comprising countries on the Eastern part of the European continent, often characterized by its history under Soviet influence during the Cold War.