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:

Message

A piece of information or communication sent from one person or entity to another, typically through spoken, written, or digital means.

Propinquity

The physical or psychological proximity between people, which increases the likelihood of interaction and relationship formation.

Similarity

The state of being alike or sharing common features, often used in psychology to explain patterns of attraction and social cohesion.

Numerosity

The cognitive ability to understand and recognize quantities or the number of objects in a set.