Majer Corporation Makes a Product with the Following Standard Costs

question 146

Multiple Choice

Majer Corporation makes a product with the following standard costs:
The company reported the following results concerning this product in February.
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 February is:

• A) $245 U
• B) $245 F
• C) $250 F
• D) $250 U

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Definitions:

Line Item

A distinct entry in a budget, financial statement, or list, representing a single charge, expenditure, or source of income.

Source of Funds

The origin of the money or capital utilized in transactions, investments, or any financial operation.

Raffle

A means of raising funds or prizes involving participants buying tickets for a chance to win.

Functional Budget

A financial plan that allocates funds based on the specific functions or activities of an organization.