Epley Corporation Makes a Product with the Following Standard Costs

question 392

Multiple Choice

Epley Corporation makes a product with the following standard costs: In July the company produced 3,300 units using 12,240 pounds of the direct material and 2,760 direct labor-hours.During the month,the company purchased 13,000 pounds of the direct material at a cost of $35,100.The actual direct labor cost was $51,612 and the actual variable overhead cost was $20,148. 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 July is:

• A)$960 F
• B)$960 U
• C)$876 F
• D)$876 U

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Definitions:

Alternative Dispute Resolution

A range of processes, like mediation or arbitration, used to resolve disputes without resorting to traditional litigation in court.

Courts

Judicial institutions established to adjudicate disputes, interpret laws, and administer justice.

Contagious Disease

An infectious disease that can be transmitted from person to person through direct contact or through the air.

Privative Clause

A clause in legislation that limits the ability to appeal administrative decisions to the courts, aiming to give finality to those decisions.