Harry Company's Standard Variable Overhead Rate Is $6 Per Direct

question 17

Multiple Choice

Harry Company's standard variable overhead rate is $6 per direct labour hour,and each unit requires 2 standard direct labour hours.During March,Harry recorded 6,000 actual direct labour hours,$37,000 actual variable overhead costs,and 2,900 units of product manufactured.
What is the total variable overhead variance for March for Harry?

• A)$600 (U)
• B)$1,000 (U)
• C)$1,200 (U)
• D)$2,200 (U)

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Definitions:

Market System

In this economic framework, the determination of investment, production, and distribution is influenced by the market signals emanating from the interplay of supply and demand.

Economic System

The mechanism or set of processes by which a society organizes and distributes its resources, goods, and services.

Factors Of Production

The four economic resources: land, labor, capital, and entrepreneurial ability.

Economic Systems

The structure and methods by which a society allocates resources and distributes goods and services among its population.