Kartman Corporation Makes a Product with the Following Standard Costs

question 185

Multiple Choice

Kartman Corporation makes a product with the following standard costs: In June the company's budgeted production was 3,500 units but the actual production was 3,600 units. The company used 22,250 pounds of the direct material and 2,300 direct labor-hours to produce this output. During the month, the company purchased 25,500 pounds of the direct material at a cost of $171,180. The actual direct labor cost was $57,121 and the actual variable overhead cost was $9,031.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 rate variance for June is:

• A) $312 Unfavorable
• B) $399 Favorable
• C) $399 Unfavorable
• D) $312 Favorable

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Definitions:

Hypothalamus

A small but crucial part of the brain involved in numerous bodily functions, including temperature regulation, thirst, hunger, sleep, mood, and the release of other hormones within the body.

Temperature Control

The process of maintaining an optimal and stable internal or external temperature in a living organism or environment.

Sexual Behavior

The manner in which individuals express their sexuality, encompassing a wide range of activities and preferences.

Forebrain

The anterior part of the brain, including the cerebral hemispheres, thalamus, and hypothalamus, involved in complex behavioral and cognitive processes.