Doogan Corporation Makes a Product with the Following Standard Costs

question 133

Multiple Choice

Doogan Corporation makes a product with the following standard costs: The company produced 5,200 units in January using 39,310 grams of direct material and 2,380 direct labor-hours. During the month, the company purchased 44,400 grams of the direct material at $1.70 per gram. The actual direct labor rate was $19.30 per hour and the actual variable overhead rate was $6.80 per hour.
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 efficiency variance for January is:

• A) $1,496 F
• B) $1,496 U
• C) $1,540 U
• D) $1,540 F

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Definitions:

Product Packaging

Materials and methods used to enclose and protect products for distribution, sale, and use.

Music Videos

Short films that integrate a song with imagery, produced for promotional or artistic purposes.

Service Mark

A mark used in the sale or the advertising of services, such as to distinguish the services of one person from the services of others. Titles, character names, and other distinctive features of radio and television programs may be registered as service marks.

Trade Name

A commercial name under which a company conducts business, recognized as a form of trademark used to identify the business to the public.