Gentile Corporation Makes a Product with the Following Standard Costs

question 161

Multiple Choice

Gentile Corporation makes a product with the following standard costs: The company produced 6,000 units in May using 36,970 kilos of direct material and 4,340 direct labor-hours. During the month, the company purchased 40,400 kilos of the direct material at $4.70 per kilo. The actual direct labor rate was $13.70 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 May is:

• A)$1,380 F
• B)$1,242 U
• C)$1,242 F
• D)$1,380 U

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Definitions:

Conceptualization

The ability to formulate or understand complex ideas and abstract concepts.

Innovation Process

A systematic approach involving stages of idea generation, development, and commercialization to introduce new products, services, or methods.

Arbitration

A method of dispute resolution in which an impartial third party makes a decision that is usually binding.

Mediation

A form of dispute resolution where a neutral third party assists the parties in reaching a mutually acceptable agreement.