Doogan Corporation Makes a Product with the Following Standard Costs

question 352

Multiple Choice

Doogan Corporation makes a product with the following standard costs: The company produced 5,300 units in January using 39,410 grams of direct material and 2,390 direct labor-hours. During the month, the company purchased 44,500 grams of the direct material at $1.80 per gram. The actual direct labor rate was $20.30 per hour and the actual variable overhead rate was $6.90 per hour.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 January is:

• A) $478 Unfavorable
• B) $530 Favorable
• C) $478 Favorable
• D) $530 Unfavorable

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Definitions:

Intentional Interference

Deliberate actions by a person intended to disrupt or interfere with another's contractual or business relationships.

Public Interest

The welfare or well-being of the general public, often considered in legislation, government actions, and legal decisions.

Prospective Competitive Advantage

The potential for a firm to achieve a future position where it outperforms rivals in efficiency, quality, innovation, or customer service.

Trade Dress Infringement

A legal violation that occurs when one company's product design or packaging is so similar to another's that it could confuse consumers.