Kibodeaux Corporation Makes a Product with the Following Standard Costs

question 37

Multiple Choice

Kibodeaux Corporation makes a product with the following standard costs: The company budgeted for production of 3,300 units in June, but actual production was 3,400 units. The company used 33,240 liters of direct material and 320 direct labor-hours to produce this output. The company purchased 35,900 liters of the direct material at $4.90 per liter. The actual direct labor rate was $22.70 per hour and the actual variable overhead rate was $2.70 per hour.

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

-The variable overhead rate variance for June is:

• A)$96 U
• B)$102 F
• C)$96 F
• D)$102 U

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Definitions:

Color

A characteristic of visual perception described through categories such as hue, saturation, and brightness, which results from the way an object reflects or emits light.

Fovea

A small, central pit in the retina of the eye responsible for sharp central vision, essential for activities where visual detail is of primary importance, like reading and driving.

Receptor Cells

Specialized cells which detect and respond to external or internal stimuli, converting them into signals that can trigger specific responses.

Night Vision

The ability to see in low-light conditions, often enhanced through the use of night vision equipment or naturally adapted vision in some animals.