Vette Tie Corporation Has Developed the Following Manufacturing Overhead Standards

question 41

Multiple Choice

Vette Tie Corporation has developed the following manufacturing overhead standards to use in applying overhead to the production of its hand-painted silk ties. Manufacturing overhead at Vette is applied to production on the basis of standard direct labor-hours (DLHs) . The above standards were based on an expected annual volume of 60,000 ties. The actual results for last year were as follows: What was Vette's variable overhead rate variance?

• A)$2,800 Unfavorable
• B)$13,200 Favorable
• C)$16,000 Favorable
• D)$68,000 Unfavorable

---

Definitions:

Unearned Fees

Income received by a business for which the services have not yet been performed or delivered.

Adjusted Trial Balance

A listing of all company accounts that will appear in the financial statements after adjusting entries have been made.

Supplies Expense

Costs incurred for supplies used in the operations of a business.

Adjustment Data

Information used to make changes to accounts for the purposes of accurate financial reporting, such as accruals or deferrals.