Galla Corporation Makes a Product with the Following Standard Costs

question 269

Multiple Choice

Galla Corporation makes a product with the following standard costs: The company budgeted for production of 2,400 units in June, but actual production was 2,500 units. The company used 19,850 pounds of direct material and 980 direct labor-hours to produce this output. The company purchased 21,700 pounds of the direct material at $6.70 per pound. The actual direct labor rate was $19.20 per hour and the actual variable overhead rate was $1.80 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 June is:

• A)$36 U
• B)$36 F
• C)$40 U
• D)$40 F

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Definitions:

Paraphrase

The restating of text or speech using different words, often to achieve greater clarity or to change the emphasis.

Invite Clarification

To request further explanation or more detailed information in order to understand something more clearly.

Free Association

A psychoanalytic technique in which a patient says whatever comes to mind without censorship as a way of exploring the unconscious mind.

Active Listening

A communication technique involving listening attentively with all senses, reflecting, and providing feedback to ensure understanding.