Ledezma Corporation Makes a Product with the Following Standards for Direct

question 55

Multiple Choice

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

In May the company produced 2,500 units using 1,210 direct labor-hours. The actual variable overhead cost was $9,922. The company applies variable overhead on the basis of direct labor-hours.
-The variable overhead rate variance for May is:

• A)$242 U
• B)$250 F
• C)$250 U
• D)$242 F

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