Valera Corporation Makes a Product with the Following Standards for Labor

question 135

Multiple Choice

Valera Corporation makes a product with the following standards for labor and variable overhead: The company budgeted for production of 5,300 units in July, but actual production was 5,400 units. The company used 2,130 direct labor-hours to produce this output. The actual variable overhead rate was $6.10 per hour. The company applies variable overhead on the basis of direct labor-hours.The variable overhead efficiency variance for July is:

• A) $183 Favorable
• B) $180 Unfavorable
• C) $180 Favorable
• D) $183 Unfavorable

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Definitions:

Assimilating Information

The process of absorbing and integrating new information into one's existing knowledge or understanding.

Adaptation

In Piaget’s theory of cognitive development, the process by which the human mind constructs its knowledge, both assimilating new information to existing knowledge structures or understandings, and accommodating those structures to create a better fit to what is new.

Accommodation

In Piaget’s theory of cognitive development, the adaptation process by which existing knowledge structures are modified somewhat when an individual is exposed to new information.

Infant Cognition

The mental processes by which infants learn to understand and interact with the world around them, including memory and problem-solving abilities.