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:

Active Listening

The act of concentrating on the true meaning of what others are saying.

Sensing

The way listeners pay attention to the signals sent from the speaker.

Responding

The way active listeners provide feedback to the speaker.

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Intense feelings directed at a specific object or person.