The Dillon Corporation Makes and Sells a Single Product

question 69

Multiple Choice

The Dillon Corporation makes and sells a single product. Overhead costs are applied on the basis of standard direct labor-hours. The standard cost card shows that 5 direct labor-hours are required per unit. The Dillon Corporation had the following budgeted and actual data for March: The variable overhead efficiency variance for March is:

• A)$12,400 F
• B)$6,160 U
• C)$12,400 U
• D)$6,160 F

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Definitions:

Overseas Production

The manufacturing of goods in a country different from where the products are sold, often to take advantage of lower labor costs or other economic conditions.