Juhasz Corporation Makes a Product with the Following Standards for Direct

question 85

Multiple Choice

Juhasz Corporation makes a product with the following standards for direct labor and variable overhead:
In August the company produced 7,900 units using 4,080 direct labor-hours. The actual variable overhead cost was $15,096. The company applies variable overhead on the basis of direct labor-hours.
-The variable overhead rate variance for August is:

• A) $1,185 F
• B) $1,224 U
• C) $1,185 U
• D) $1,224 F

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Definitions:

Soft Drinks

Beverages that are non-alcoholic and typically carbonated, often containing sugar, flavorings, and acids.

Marginal Utility

The additional satisfaction or utility gained from consuming an additional unit of a good or service.

Utility Per Dollar

Represents the amount of satisfaction or pleasure received per unit of expenditure.

Good

A tangible or intangible product that can satisfy a need or desire, and is transferable from one person to another.