Jardell Corporation Makes a Product with the Following Standards for Labor

question 99

Multiple Choice

Jardell Corporation makes a product with the following standards for labor and variable overhead: The company budgeted for production of 6,400 units in June, but actual production was 6,400 units. The company used 3,180 direct labor-hours to produce this output. The actual variable overhead rate was $4.90 per hour. The company applies variable overhead on the basis of direct labor-hours.
-The variable overhead rate variance for June is:

• A)$318 U
• B)$320 F
• C)$318 F
• D)$320 U

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Definitions:

Body Movements

The act of changing the position or posture of the body or any of its parts, often studied in ergonomics to improve human-machine interaction and workplace safety.

Scanlon Plan

A participative management method that focuses on rewarding employees for increases in productivity.

Labour Cost

The total expense incurred from compensating employees for their work, including wages, benefits, and taxes.

Compensation Schemes

Systems or programs designed to reward employees monetarily for their work or performance.