Bulluck Corporation Makes a Product with the Following Standard Costs

question 228

Multiple Choice

Bulluck Corporation makes a product with the following standard costs:
The company reported the following results concerning this product in July.
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 October is:

• A) $1,400 Favorable
• B) $1,225 Unfavorable
• C) $1,900 Unfavorable
• D) $2,700 Favorable

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Definitions:

Everyday Lives

Refers to the daily activities, routines, and interactions that make up an individual's normal existence or way of living.

Common Sense

The basic level of practical knowledge and judgment that is shared by a large number of people; the ability to make sound decisions on everyday matters.

Logic of Science

The principles and criteria for valid reasoning and argument within scientific disciplines, including the methods for empirical verification and hypothesis testing.

Sensible Conclusions

Logical or reasonable conclusions derived from available evidence and sound reasoning.