Biery Corporation Makes a Product with the Following Standard Costs

question 380

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 rate variance for April is:

• A)$261 U
• B)$246 F
• C)$261 F
• D)$246 U

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