Handerson Corporation Makes a Product with the Following Standard Costs

question 200

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 rate variance for August is:

• A) $640 F
• B) $580 U
• C) $640 U
• D) $580 F

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