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

---

Definitions:

Conscientiousness

An attribute in an individual's character that involves being structured, dependable, and possessing a serious dedication to duties.

Dependable

Capable of being relied on; trustworthy or reliable.

Conscientiousness

A quality in a person that includes being orderly, trustworthy, and having a deep commitment to obligations.

Diligent

Showing careful and persistent work or effort in tasks or duties.