Caquias Corporation Makes a Product with the Following Standard Costs

question 71

Multiple Choice

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

• A)$200 F
• B)$205 U
• C)$205 F
• D)$200 U

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Definitions:

Rods

Photoreceptor cells in the retina of the eye, highly sensitive to light, which enable vision in low light conditions.

Malleus

A small bone in the middle ear that transmits sound vibrations from the eardrum to the incus, also known as the "hammer."

Tympanic Membrane

Eardrum; cellular membrane that separates the external from the middle ear; vibrates in response to sound waves.

Oval Window

Membranous structure to which the stapes attaches; transmits vibrations to the inner ear.