Kartman Corporation Makes a Product with the Following Standard Costs

question 146

Multiple Choice

Kartman Corporation makes a product with the following standard costs: In June the company's budgeted production was 3,400 units but the actual production was 3,500 units. The company used 22,150 pounds of the direct material and 2,290 direct labor-hours to produce this output. During the month, the company purchased 25,400 pounds of the direct material at a cost of $170,180. The actual direct labor cost was $57,021 and the actual variable overhead cost was $8,931.
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 June is:

• A) $210 U
• B) $229 F
• C) $229 U
• D) $210 F

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Definitions:

Real World

Actual, practical conditions and circumstances as opposed to theoretical or imagined scenarios.

Illusion of Control

The false belief that one has influence over outcomes that they actually have no control over.

Ethical Decision

A choice made based on moral principles and values affecting the well-being of others or oneself.