Eliezrie Corporation Makes a Product with the Following Standard Costs

question 162

Multiple Choice

Eliezrie Corporation makes a product with the following standard costs: In January the company's budgeted production was 7,400 units but the actual production was 7,500 units. The company used 45,580 kilos of the direct material and 2,030 direct labor-hours to produce this output. During the month, the company purchased 48,500 kilos of the direct material at a cost of $53,350. The actual direct labor cost was $18,473 and the actual variable overhead cost was $7,714. 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 January is:

• A)$406 F
• B)$450 F
• C)$406 U
• D)$450 U

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Definitions:

Human-Made Environment

Environments and settings that have been created or significantly altered by human activity, as opposed to natural environments.

Wilderness

Natural areas left undisturbed by human development, where ecosystems operate freely without significant human influence.

Treadmill Of Production

A theory that explains the persistent and self-perpetuating cycle of production and consumption driven by industrial society's demand for continuous economic growth.

Privatize

The process of transferring ownership and control of a business, enterprise, agency, or public service from the government to private individuals or organizations.