Novelli Corporation Makes a Product Whose Variable Overhead Standards Are

question 154

Multiple Choice

Novelli Corporation makes a product whose variable overhead standards are based on direct labor-hours. The quantity standard is 0.6 hours per unit. The variable overhead rate standard is $5.00 per hour. In September the company produced 1,600 units using 950 direct labor-hours. The actual variable overhead rate was $5.10 per hour. The variable overhead efficiency variance for September is:

• A)$51 U
• B)$50 U
• C)$51 F
• D)$50 F

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Definitions:

Cognition

The mental action or process of acquiring knowledge and understanding through thought, experience, and the senses.

Gardner's Multiple Intelligences

Gardner's Multiple Intelligences theory proposes that intelligence is not a single general ability, but rather is composed of various distinct types of cognitive capabilities.

Tacit

Understood or implied without being stated openly; known intuitively or through unspoken context.

Cross-Cultural Study

A research method that involves comparing cultures or different cultural groups, to understand universal and specific behaviors or social phenomena.