Judd Company Uses Standard Costs for Its Manufacturing Division At the End of the Year,actual Data Were as Follows

question 189

Multiple Choice

Judd Company uses standard costs for its manufacturing division.Standards specify 0.1 direct labor hours per unit of product.The allocation base for variable overhead costs is direct labor hours.At the beginning of the year,the static budget for variable overhead costs included the following data: $$\begin{array} { | l | l | } \hline \text { Production volume } & 6300 \text { units } \\\hline \text { Budgeted variable overhead costs } & \$ 15,000 \\\hline \text { Budgeted direct labor hours } & 630 \text { hours } \\\hline\end{array}$$ At the end of the year,actual data were as follows:
$$\begin{array} { | l | l | } \hline \text { Production volume } & 4200 \text { units } \\\hline \text { Actual variable overhead costs } & \$ 15,000 \\\hline \text { Actual direct labor hours } & 480 \text { hours } \\\hline\end{array}$$ What is the variable overhead cost variance? (Round any intermediate calculations to the nearest cent,and your final answer to the nearest dollar.)

• A) $15,000 U
• B) $15,000 F
• C) $3571 U
• D) $4687 F

---

Definitions:

Sound Waves

Vibrations that travel through the air or another medium and can be heard when they reach a person's or animal's ear.

Amplitude

The extent or range of a vibratory movement, measured from the position of equilibrium, commonly used to describe the magnitude of sound waves or other oscillations.

Frequency

The number of occurrences of a repeating event per unit of time, often used in the context of waves (such as sound or light) to indicate cycles per second (Hz).

Timbre

The quality of a musical note or sound that distinguishes different types of sound production, such as voices or musical instruments.