Kartman Corporation Makes a Product with the Following Standard Costs

question 21

Multiple Choice

Kartman Corporation makes a product with the following standard costs:
In June the company's budgeted production was 3,400 units but the actual production was 3,500 units. The company used 22,150 pounds of the direct material and 2,290 direct labor-hours to produce this output. During the month, the company purchased 25,400 pounds of the direct material at a cost of $170,180. The actual direct labor cost was $57,021 and the actual variable overhead cost was $8,931.
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 June is:

• A) $760 F
• B) $760 U
• C) $741 F
• D) $741 U

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Definitions:

War of 1812

A military conflict between the United States and the United Kingdom and its allies, lasting from 1812 to 1815, largely over issues of trade and maritime rights.

Treaty of Greenville

A 1795 agreement between the United States and various Native American tribes which established a boundary line and aimed to end hostilities and secure rights to settlement.

British Blockaded

Refers to historical instances where British naval forces imposed a blockade on enemy ports to restrict and control maritime traffic and goods.

Embargo Act

Legislation enacted by the U.S. Congress in 1807 prohibiting American ships from trading in all foreign ports, in response to British and French restrictions on U.S. trade.