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

Comprehend the benefits and structures of formal and informal mentoring systems.

Identify strategies for successful networking and the cultivation of professional contacts.

Identify and explain different prewriting techniques.

Analyze and interpret examples of prewriting to determine the technique used.

---

Definitions:

Manufacturing Overhead

All manufacturing costs that are not directly involved in the production of a product, including indirect materials, indirect labor, and other indirect costs.

Credit Balance

The amount of money that a company or individual has in their account, indicating that they have received more money than they have spent.

Overapplied

A situation where the allocated overhead costs for a product or service exceed the actual overhead costs incurred.

Applying Overhead

The process of allocating indirect manufacturing costs to produced goods based on established criteria.