Kibodeaux Corporation Makes a Product with the Following Standard Costs

question 17

Multiple Choice

Kibodeaux Corporation makes a product with the following standard costs: The company budgeted for production of 3,300 units in June, but actual production was 3,400 units. The company used 33,240 liters of direct material and 320 direct labor-hours to produce this output. The company purchased 35,900 liters of the direct material at $4.90 per liter. The actual direct labor rate was $22.70 per hour and the actual variable overhead rate was $2.70 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 June is:

• A)$54 F
• B)$54 U
• C)$60 F
• D)$60 U

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Definitions:

Magnetic Resonance Imaging

A diagnostic technique that uses magnetic fields and radio waves to produce detailed images of the body's internal structures.

Nonionizing Radiation

A type of radiation that does not carry enough energy to ionize atoms or molecules, such as radiowaves and microwaves, considered less harmful to tissue than ionizing radiation.

Strong Magnetic Field

A region around a magnetic material or a moving electric charge within which the force of magnetism acts.

Barium Enema

A diagnostic imaging procedure where barium sulfate is used to fill and visualize the large intestine, including the colon, on an X-ray.