Novelli Corporation Makes a Product Whose Variable Overhead Standards Are

question 49

Multiple Choice

Novelli Corporation makes a product whose variable overhead standards are based on direct labor-hours. The quantity standard is 0.6 hours per unit. The variable overhead rate standard is $5.00 per hour. In September the company produced 1,600 units using 950 direct labor-hours. The actual variable overhead rate was $5.10 per hour. The variable overhead rate variance for September is:

• A)$95 F
• B)$96 U
• C)$95 U
• D)$96 F

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Definitions:

Interim Financial Statements

Financial reports covering a period shorter than the fiscal year, often quarterly, to provide an ongoing view of the company's financial position.