Doogan Corporation Makes a Product with the Following Standard Costs

question 43

Multiple Choice

Doogan Corporation makes a product with the following standard costs:
The company produced 5,200 units in January using 39,310 grams of direct material and 2,380 direct labor-hours. During the month, the company purchased 44,400 grams of the direct material at $1.70 per gram. The actual direct labor rate was $19.30 per hour and the actual variable overhead rate was $6.80 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 efficiency variance for January is:

• A) $1,496 F
• B) $1,496 U
• C) $1,540 U
• D) $1,540 F

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Definitions:

Beachhead Market

An initial target market that a company focuses on penetrating to establish a strong presence before expanding to broader markets.

Crossing The Chasm

A marketing theory that describes the challenge of transitioning from early adopters of a product or service to a broader mainstream market.

Positioning

A marketing strategy that focuses on how your customers think or talk about product and company relative to competitors.

Psychographics

The study and classification of people according to their attitudes, aspirations, and other psychological criteria, especially in market research.