Zacher Corporation Makes a Product with the Following Standards for Direct

question 184

Multiple Choice

Zacher Corporation makes a product with the following standards for direct labor and variable overhead: In February the company's budgeted production was 6,900 units, but the actual production was 7,000 units. The company used 1,980 direct labor-hours to produce this output. The actual variable overhead cost was $10,296. The company applies variable overhead on the basis of direct labor-hours. The variable overhead rate variance for February is:

• A)$420 U
• B)$420 F
• C)$396 F
• D)$396 U

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Definitions:

Incentives

Rewards or penalties designed to encourage or discourage specific behaviors among individuals or groups, often used in economic and business contexts.

Information

is data that is processed, organized, or presented in a manner that makes it meaningful and useful for decision-making, learning, or analysis.

Firm Division

A segment or branch of a firm that operates under the larger corporate umbrella, focusing on specific operational tasks or market sectors.

Hierarchy

A system or organization in which people or groups are ranked one above the other according to status or authority.