Valera Corporation Makes a Product with the Following Standards for Labor

question 115

Multiple Choice

Valera Corporation makes a product with the following standards for labor and variable overhead: The company budgeted for production of 5,300 units in July, but actual production was 5,400 units. The company used 2,130 direct labor-hours to produce this output. The actual variable overhead rate was $6.10 per hour. The company applies variable overhead on the basis of direct labor-hours.
The variable overhead rate variance for July is:

• A) $213 F
• B) $216 F
• C) $216 U
• D) $213 U

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Definitions:

University

An institution of higher education and research, which grants academic degrees in various subjects.

Media Scholar

A media scholar is an academic or researcher who specializes in the study of media, its impacts, and related cultural, societal, and technological issues.

Global Village

A term coined by Marshall McLuhan to describe how the world has been contracted into a village by electric technology and the instantaneous movement of information from every quarter to every point.

Marshall McLuhan

A media theorist and educator known for coining the expressions "the medium is the message" and "global village," and for his insights on how media affects societal structures and cultural perceptions.