Brummer Corporation Makes a Product Whose Variable Overhead Standards Are

question 12

Multiple Choice

Brummer Corporation makes a product whose variable overhead standards are based on direct labor-hours. The quantity standard is 0.1 hours per unit. The variable overhead rate standard is $8.00 per hour. In January the company produced 8,700 units using 910 direct labor-hours. The actual variable overhead rate was $7.90 per hour.The variable overhead efficiency variance for January is:

• A) $320 Favorable
• B) $316 Unfavorable
• C) $320 Unfavorable
• D) $316 Favorable

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Definitions:

Acupuncture

An ancient Chinese medical practice that involves inserting thin needles into specific points on the body to alleviate pain and treat various health conditions.

CAM

An abbreviation for Complementary and Alternative Medicine, practices and products used alongside or instead of conventional medicine.

Costs of Treatments

The financial expenses associated with medical care, including diagnostic tests, medication, therapy, and hospital stays.

Insurance

A financial arrangement providing protection against potential financial losses or expenses, such as medical bills or property damage.