Marten Corporation Makes a Product with the Following Standards for Direct

question 122

Multiple Choice

Marten Corporation makes a product with the following standards for direct labor and variable overhead: In May the company produced 2,800 units using 300 direct labor-hours. The actual variable overhead cost was $1,620. The company applies variable overhead on the basis of direct labor-hours.
-The variable overhead rate variance for May is:

• A)$112 U
• B)$112 F
• C)$120 F
• D)$120 U

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Definitions:

Credit Balance

A situation where the total credits in an account exceed the total debits; it's common in liability, revenue, and equity accounts.

Risk Assessment

The process of identifying and evaluating potential risks that could negatively affect the achievement of objectives.

Internal Control

Procedures and policies implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Debt Investments

Investments made in securities that require the issuer to repay the principal along with interest.