Valera Corporation Makes a Product with the Following Standards for Labor

question 50

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 efficiency variance for July is:

• A) $183 F
• B) $180 U
• C) $180 F
• D) $183 U

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Definitions:

Nitrogen-Restoring

A process or practice that helps replenish nitrogen in the soil, often through natural means like the planting of leguminous plants or through technological interventions.

Intercropping

An agricultural practice that involves growing two or more crops in proximity for purposes such as pest control, pollination, and to increase productivity.

Alfalfa

A leguminous plant with clover-like leaves and bluish flowers, widely grown as forage for cattle and as a nitrogen-fixing crop, enriching soil fertility.

Subsistence Agriculture

Farming practices aimed at self-sufficiency, producing enough food for the farmer's family, with little to no surplus for trade.