Biery Corporation Makes a Product with the Following Standard Costs

question 276

Multiple Choice

Biery Corporation makes a product with the following standard costs: The company produced 4,100 units in April using 5,380 liters of direct material and 2,610 direct labor-hours. During the month, the company purchased 6,000 liters of the direct material at $5.80 per liter. The actual direct labor rate was $19.80 per hour and the actual variable overhead rate was $2.90 per hour. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
The variable overhead efficiency variance for April is:

• A)$435 F
• B)$435 U
• C)$450 U
• D)$450 F

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Definitions:

Moles

A unit of measure in chemistry representing 6.02214076 × 10^23 particles of a substance, used to express amounts of a chemical substance.

Temperature

A measure of the average kinetic energy of the particles in a sample, influencing physical states, chemical reactions, and biological processes.

Atm

Short for "atmosphere," a unit of pressure or a reference to the gaseous envelope surrounding a celestial body.

Container

An object that can be used to hold or transport something, varying widely in size, shape, and materials depending on its purpose.