Miguez Corporation Makes a Product with the Following Standard Costs

question 52

Multiple Choice

Miguez Corporation makes a product with the following standard costs:
The company budgeted for production of 2,600 units in September, but actual production was 2,500 units. The company used 5,440 liters of direct material and 1,680 direct labor-hours to produce this output. The company purchased 5,800 liters of the direct material at $7.20 per liter. The actual direct labor rate was $24.10 per hour and the actual variable overhead rate was $1.90 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 September is:

• A) $140 U
• B) $140 F
• C) $133 F
• D) $133 U

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Definitions:

REM Sleep

A stage of sleep characterized by rapid eye movement, vivid dreaming, and increased brain activity, playing a key role in learning and memory.

Beta Rhythms

Brain waves that are associated with active, alert cognition and wakefulness, typically occurring in a frequency range of 12–30 Hz.

Respiration

The physiological process of inhaling oxygen and exhaling carbon dioxide from the body, essential for maintaining life.

Hypnosis

A trance-like state of focused attention and heightened suggestibility, often used for therapeutic purposes.