Doogan Corporation Makes a Product with the Following Standard Costs

question 65

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 rate variance for January is:

• A) $476 U
• B) $520 F
• C) $476 F
• D) $520 U

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Definitions:

Mining

The process of extracting minerals or other geological materials from the earth, typically from an ore body, lode, vein, seam, or reef.

Unionization Rates

The proportion of a workforce that is members of a union or labor organization.

African Americans

A racial or ethnic group in the United States with African ancestry, distinguished by shared historical, cultural, and social experiences.

Transportation Workers

Transportation workers are individuals involved in the movement of people or goods, including roles in aviation, shipping, rail, and road transport.