Latimer Textiles Inc

question 48

Multiple Choice

Latimer Textiles Inc. Latimer Textiles Inc. incurred actual variable overhead expenses of $27,000 in the current year for the production of 8,000 units. Variable overhead was applied at a rate of $1.75 per direct labor hour and 2 direct labor hours were budgeted for each unit. The company used 17,400 direct labor hours for production.
Refer to the Latimer Textiles Inc. information above. What was Latimer's variable overhead spending variance?

• A) $3,450 U
• B) $3,450 F
• C) $2,450 U
• D) $2,450 F

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Definitions:

Afterbirth

The third stage of birth, when the placenta, umbilical cord, and other membranes are detached and expelled.

Birth Process

The series of physiological events by which a fetus is expelled from the womb and enters the external world as a newborn

Third Stage

In the context of childbirth, the third stage of labor involves the delivery of the placenta after the baby is born. In other contexts, it can refer to a specific phase in a process or development.

Birth Process

The physiological and medical events involved in childbirth, from the onset of labor through delivery of the baby and placenta.