Irving Corporation Makes a Product with the Following Standards for Direct

question 107

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 efficiency variance for November is:

• A) $552 U
• B) $600 U
• C) $600 F
• D) $552 F

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Definitions:

Product Availability

the extent to which a product is obtainable in the desired quantities at the right time and place for customers.

Revenue

The total amount of income generated by the sale of goods or services related to a company's primary operations.

Cost of Overselling

The expense or loss a company faces when more products are sold than can be supplied, leading to stockouts, potential customer dissatisfaction, and extra costs to fulfill orders.

Unsold Unit

An item that remains in inventory without being purchased by customers.