Brummer Corporation Makes a Product Whose Variable Overhead Standards Are

question 50

Multiple Choice

Brummer Corporation makes a product whose variable overhead standards are based on direct labor-hours. The quantity standard is 0.20 hours per unit. The variable overhead rate standard is $8.90 per hour. In January the company produced 4,900 units using 1,010 direct labor-hours. The actual variable overhead rate was $8.80 per hour.The variable overhead efficiency variance for January is:

• A) $267 Favorable
• B) $264 Unfavorable
• C) $267 Unfavorable
• D) $264 Favorable

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Definitions:

Orbital Hybridization

A rearrangement of the orbitals in the valence shell that may occur when an atom forms covalent bonds with other atoms.

Very Strong Acid

Acids that completely ionize in solution, having a very low pH value, such as hydrochloric acid.

Organic Molecules

Compounds containing carbon atoms bonded to hydrogen atoms, often forming the chemical basis of living organisms.

Carbon

A chemical element with symbol C, essential to all known life, capable of forming a vast number of compounds including organic compounds.