Vermeillen Corporation Uses a Standard Costing System in Which Variable $\bullet$

question 25

Multiple Choice

Vermeillen Corporation uses a standard costing system in which variable manufacturing overhead is assigned to production on the basis of the number of machine setups. The following data pertain to one month's operations: $\bullet$ Variable manufacturing overhead cost incurred: $70,000
$\bullet$ Total variable manufacturing overhead variance: $4,550 Favorable
$\bullet$ Standard machine setups allowed for actual production: 3,550
$\bullet$ Actual machine setups incurred: 3,500
The variable overhead rate variance is:

• A) $1,000 Favorable
• B) $1,000 Unfavorable
• C) $3,500 Unfavorable
• D) $3,500 Favorable

---

Definitions:

Benefits Loss

The reduction or elimination of employee benefits, which can have financial and morale implications on individuals within an organization.

Attitude Change

The process of altering one's beliefs, feelings, or intended behaviors towards a person, object, or idea.

Self-esteem Levels

The degree to which a person values themselves, which can affect their confidence, behavior, and overall mental health.

Extreme Attitudes

Highly polarized beliefs or opinions that significantly deviate from the moderate or neutral point of view.