Sande Corporation Makes a Product with the Following Standard Costs

question 62

Multiple Choice

Sande Corporation makes a product with the following standard costs: In November the company's budgeted production was 2,900 units but the actual production was 3,000 units. The company used 27,670 grams of the direct material and 1,390 direct labor-hours to produce this output. During the month, the company purchased 31,700 grams of the direct material at a cost of $196,540. The actual direct labor cost was $29,607 and the actual variable overhead cost was $2,502.

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 November is:

• A)$220 U
• B)$198 F
• C)$198 U
• D)$220 F

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Definitions:

Dissociative Fugue

A psychological state in which a person loses awareness of their identity or other important autobiographical information and often engages in unexpected travel or wandering.

Cognitive

Pertaining to the mental processes of perception, memory, judgment, and reasoning.

Emotional

Related to feelings, moods, and affective states of a person, often influencing behavior and thought processes.

Physical

Relating to or concerning the body as opposed to the mind or spirit.