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:

Psychosurgery

A type of brain surgery, such as lobotomy, performed to alter behavior and treat mental illness by removing or destroying brain tissue.

Electroshock Treatment

Also known as electroconvulsive therapy (ECT), a psychiatric treatment in which seizures are electrically induced in patients to provide relief from mental disorders.

Memory Loss

The inability to remember information or experiences, ranging from temporary forgetfulness to chronic amnesia.

Prefrontal Lobotomy

A now rare neurosurgical procedure that was once used to treat mental disorders by cutting connections in the brain's prefrontal cortex.