Irving Corporation Makes a Product with the Following Standards for Direct

question 234

Multiple Choice

Irving Corporation makes a product with the following standards for direct labor and variable overhead:
In November the company's budgeted production was 5,300 units, but the actual production was 5,100 units. The company used 1,650 direct labor-hours to produce this output. The actual variable overhead cost was $7,590. The company applies variable overhead on the basis of direct labor-hours.
-The variable overhead rate variance for November is:

• A) $612 U
• B) $660 U
• C) $660 F
• D) $612 F

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Definitions:

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