Brummer Corporation Makes a Product Whose Variable Overhead Standards Are

question 61

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 rate variance for January is:

• A) $91 Favorable
• B) $87 Favorable
• C) $91 Unfavorable
• D) $87 Unfavorable

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Definitions:

Hypothalamus

Part of the vertebrate brain; in mammals it regulates the pituitary gland, the autonomic system, emotional responses, body temperature, water balance, and appetite; located below the thalamus.

Sensory Nerve Cells

Nerve cells that are responsible for converting external stimuli from the organism's environment into internal electrical impulses.

Sweat Glands

Specialized glands in the skin that produce sweat, a fluid containing water and salts, which helps regulate body temperature.

Skeletal Muscles

Muscles attached to the skeleton that are responsible for movement and are under voluntary control.