Desue Corporation Makes a Product with the Following Standards for Labor

question 105

Multiple Choice

Desue Corporation makes a product with the following standards for labor and variable overhead: The company budgeted for production of 6,500 units in December, but actual production was 6,300 units. The company used 610 direct labor-hours to produce this output. The actual variable overhead rate was $6.40 per hour. The company applies variable overhead on the basis of direct labor-hours. The variable overhead rate variance for December is:

• A)$366 U
• B)$366 F
• C)$378 F
• D)$378 U

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Definitions:

Duration

The amount of time something lasts or continues.

Depressive Episode

A period characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities, often affecting a person’s daily functioning.

Cyclothymia

A mood disorder characterized by periods of hypomanic symptoms as well as periods of depressive symptoms that are not as severe as those in bipolar disorder.

Dissociative Fugue

A rare psychiatric disorder characterized by reversible amnesia for personal identity, including the memories, personality, and other identifying characteristics of individuality.