Desue Corporation Makes a Product with the Following Standards for Labor

question 80

Multiple Choice

Desue Corporation makes a product with the following standards for labor and variable overhead:

The company budgeted for production of 6,500 units in December, but actual production was 6,300 units. The company used 610 direct labor-hours to produce this output. The actual variable overhead rate was $6.40 per hour. The company applies variable overhead on the basis of direct labor-hours.

-The variable overhead rate variance for December is:

• A)$366 U
• B)$366 F
• C)$378 F
• D)$378 U

---

Definitions:

Social Exchange

A theory that suggests human relationships are formed based on a cost-benefit analysis and the principle of reciprocity.

Norm of Reciprocity

A social norm that expects individuals to respond to each other in kind, returning benefits for benefits and responding with either indifference or hostility to harms.

Kin Selection

A biological approach that prioritizes the propagation of an organism's kin over its own survival and reproductive achievements, even if it means personal sacrifice.

Norm of Reciprocity

A social standard that expects an individual to respond to others with the same behavior they have received, such as kindness for kindness.