Handerson Corporation Makes a Product with the Following Standard Costs

question 133

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 variable overhead efficiency variance for August is:

• A) $720 Unfavorable
• B) $720 Favorable
• C) $780 Unfavorable
• D) $780 Favorable

---

Definitions:

Lube Breakdown

The degradation of lubricating oil's properties, leading to reduced effectiveness and the potential for increased wear and tear on components.

Gear Lube Viscosity

A measure of the thickness and flow resistance of lubricating oil used in gear systems, impacting performance under varying temperatures and loads.

Flow Characteristics

The properties of how a fluid or gas moves within various systems or conditions, affecting performance and efficiency in processes.