Biery Corporation Makes a Product with the Following Standard Costs

question 132

Multiple Choice

Biery Corporation makes a product with the following standard costs: The company produced 4, 100 units in April using 5, 380 liters of direct material and 2, 610 direct labor-hours.During the month, the company purchased 6, 000 liters of the direct material at $5.80 per liter.The actual direct labor rate was $19.80 per hour and the actual variable overhead rate was $2.90 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 efficiency variance for April is:

• A)$435 F
• B)$435 U
• C)$450 U
• D)$450 F

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Definitions:

Spot Market

A public financial market in which financial instruments or commodities are traded for immediate delivery.

Futures Market

A financial market where participants can buy and sell futures contracts, which are agreements to buy or sell an asset at a future date at a price agreed upon today.

Simultaneous

Occurring, operating, or done at the same time.

Position

In finance, a position refers to the amount of a particular security, commodity, or currency held or owned by an individual or entity.