Zacher Corporation Makes a Product with the Following Standards for Direct

question 169

Multiple Choice

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

In February the company's budgeted production was 6,900 units, but the actual production was 7,000 units. The company used 1,980 direct labor-hours to produce this output. The actual variable overhead cost was $10,296. The company applies variable overhead on the basis of direct labor-hours.
-The variable overhead rate variance for February is:

• A)$420 U
• B)$420 F
• C)$396 F
• D)$396 U

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Definitions:

Flexible Exchange Rate

Rate determined in foreign exchange markets by the forces of demand and supply without government intervention.

Fixed Exchange Rate

A currency system where the value of a currency is pegged to another currency, a basket of currencies, or a physical commodity like gold.

Exchange Rate

The price of one currency in terms of another, determining how much foreign currency can be exchanged for a unit of domestic currency.

Financial Transactions

Activities involving the exchange of money between parties, including buying, selling, lending, and borrowing.