Hurren Corporation Makes a Product with the Following Standard Costs

question 23

Multiple Choice

Hurren Corporation makes a product with the following standard costs: The company reported the following results concerning this product in June. 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 June is:

• A)$1,365 U
• B)$1,365 F
• C)$1,350 F
• D)$1,350 U

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Definitions:

Respondeat Superior

A legal doctrine making an employer (or master) liable for the torts of an employee (servant) that are committed within the scope of the employee’s employment.

Deferred Prosecution Agreements

Agreements between prosecutors and defendants whereby prosecution is postponed for a specified period provided the defendant meets certain conditions.

Non-prosecution Agreements

Legal agreements in which prosecutors agree not to file charges against an individual or company in exchange for cooperation or other conditions.

Monetary Penalties

Fines or financial charges imposed on individuals, organizations, or companies as punishment for breaking laws or regulations.