Epley Corporation Makes a Product with the Following Standard Costs

question 117

Multiple Choice

Epley Corporation makes a product with the following standard costs: In July the company produced 3,300 units using 12,240 pounds of the direct material and 2,760 direct labor-hours. During the month, the company purchased 13,000 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $51,612 and the actual variable overhead cost was $20,148. 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 rate variance for July is:

• A)$1,932 U
• B)$1,932 F
• C)$1,848 U
• D)$1,848 F

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Definitions:

Marketplace

A physical or virtual venue where goods, services, or information are exchanged, ranging from local farmers markets to online platforms.

Physical Size

The dimensions, volume, or extent of an object or person's body, often measured in terms of height, weight, or area.

In-Store Sampling

Offering free samples of products to customers within a retail environment to encourage trial and purchase.

National Advertising

Advertising designed to reach all users of the product, whether customers or industrial buyers.