Termeer Incorporated Has Provided the Following Data Concerning One of the Products

question 266

Multiple Choice

Termeer Incorporated has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The company has reported the following actual results for the product for August:
The variable overhead efficiency variance for the month is closest to:

• A) $46 Unfavorable
• B) $42 Favorable
• C) $46 Favorable
• D) $42 Unfavorable

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Definitions:

Milia

Tiny, white, keratin-filled cysts that form under the skin, often appearing on the face.

Lanugo

Fine, soft hair, especially that which covers the body and limbs of a human fetus or newborn.

Notochords

A flexible rod-shaped structure that provides support in all embryonic and some adult chordate animals.

Vertebrae

(vertebrae) (sing., vertebra) The bones that make up the spine.