Gremminger Incorporated Makes a Single Product--A Critical Part Used in Commercial

question 135

Multiple Choice

Gremminger Incorporated makes a single product--a critical part used in commercial airline seats.The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period.Data concerning the most recent year appear below: The variable overhead rate variance is:

• A)$19,404 F
• B)$17,952 F
• C)$19,404 U
• D)$17,952 U

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