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:

Respiration

The process of inhaling oxygen and exhaling carbon dioxide, crucial for life.

Tuberculosis Test

A medical test used to detect the presence of tuberculosis bacteria, such as the Mantoux tuberculin skin test or blood tests.

Reddened Area

A patch of skin that appears red due to inflammation, irritation, or the presence of an underlying condition.

Inconclusive

Not leading to a firm conclusion or definitive result; leaving questions unanswered.