Latimer Textiles Inc. Latimer Textiles Inc. Incurred Actual Variable Overhead Expenses of $27

question 81

Multiple Choice

Latimer Textiles Inc.
Latimer Textiles Inc. incurred actual variable overhead expenses of $27 000 in the current year for the production of 8000 units. Variable overhead was applied at a rate of $1.75 per direct labour hour and 2 direct labour hours were budgeted for each unit. The company used 17 400 direct labour hours for production.
-What was Latimer's variable overhead efficiency variance?

• A) $3450 U
• B) $3450 F
• C) $2450 U
• D) $2450 F

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Definitions:

Empty

A state or condition where no elements, members, or items are present, often used in data contexts to describe a lack of values.

Average Arrival Rate

Measures the average rate at which entities (such as customers, calls, or vehicles) arrive into a system or facility over a specified period.

Average Number

A basic statistical measure represented by the sum of all values divided by the count of values, commonly used to describe the central tendency of data.

Probability

The measure of the likelihood that an event will occur, quantified as a number between 0 and 1.