Majer Corporation Makes a Product with the Following Standard Costs

question 160

Multiple Choice

Majer Corporation makes a product with the following standard costs: The company reported the following results concerning this product in February.
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 February is:

• A) $245 U
• B) $245 F
• C) $250 F
• D) $250 U

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Definitions:

Heterotrophic

An organism that obtains its energy and carbon by consuming other organisms, unable to produce its own food.

Autotrophic

Organisms capable of synthesizing their own food from inorganic substances using light or chemical energy.

Parasitic

Pertaining to organisms that live on or in a host organism and cause harm to their host.

Extreme Environments

Environments with conditions that are challenging to most life forms, such as extreme temperatures, pressures, or chemical concentrations.