Handerson Corporation Makes a Product with the Following Standard Costs

question 59

Multiple Choice

Handerson Corporation makes a product with the following standard costs: The company reported the following results concerning this product in August.
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 labor efficiency variance for August is:

• A) $2,400 Unfavorable
• B) $2,400 Favorable
• C) $2,352 Favorable
• D) $2,352 Unfavorable

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Definitions:

Commercial Railroad

A railway system designed primarily for the transportation of goods and passengers for business purposes, significantly contributing to economic development.

Baltimore and Ohio Railroad

One of the oldest railroads in the United States, established in 1827, significant for its role in the development of American transportation.

Union Pacific

A major railroad company operating in the United States, known for its historical role in the transcontinental railroad's construction.

Western Migration

The movement of people to the western territories and states of the United States, particularly during the 19th century, in search of land, opportunity, and a better life.