Valera Corporation Makes a Product with the Following Standards for Labor

question 34

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 rate variance for July is:

• A) $213 F
• B) $216 F
• C) $216 U
• D) $213 U

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Definitions:

Supervisor Role

A position that involves overseeing and guiding the work of other employees, ensuring tasks are completed efficiently and effectively.

Orientation Process

The procedure of introducing new employees to their job roles, the company's policies, and culture to ensure a smooth transition and integration into the organization.

HR Department

The department within an organization responsible for managing human resources, including recruitment, training, employee relations, and benefits administration.

Simulation

The technique of creating a model of a real-world situation or system to study its operation and explore outcomes.