Doogan Corporation Makes a Product with the Following Standard Costs

question 43

Multiple Choice

Doogan Corporation makes a product with the following standard costs:
The company produced 5,200 units in January using 39,310 grams of direct material and 2,380 direct labor-hours. During the month, the company purchased 44,400 grams of the direct material at $1.70 per gram. The actual direct labor rate was $19.30 per hour and the actual variable overhead rate was $6.80 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 January is:

• A) $1,496 F
• B) $1,496 U
• C) $1,540 U
• D) $1,540 F

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Definitions:

Semi-Annual Coupon

Describes the interest payment made to bondholders every six months until the bond's maturity date.

Yield To Maturity

The total return anticipated on a bond if it is held until its maturity date, accounting for interest payments and the repayment of the principal.

Market Price

The current cost for engaging in transactions involving assets or services.

Zero-Coupon Bond

A type of bond that does not pay periodic interest but is issued at a discount to its face value and matures at face value.