Galla Corporation Makes a Product with the Following Standard Costs

question 177

Multiple Choice

Galla Corporation makes a product with the following standard costs:


The company budgeted for production of 2,400 units in June, but actual production was 2,500 units. The company used 19,850 pounds of direct material and 980 direct labor-hours to produce this output. The company purchased 21,700 pounds of the direct material at $6.70 per pound. The actual direct labor rate was $19.20 per hour and the actual variable overhead rate was $1.80 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 rate variance for June is:

• A)$196 U
• B)$200 F
• C)$200 U
• D)$196 F

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Definitions:

Aggression

Any behavior intended to harm another person who is motivated to avoid the harm

Social Psychologists

Scientists who specialize in understanding how an individual's thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others.

Suicide

The act of intentionally causing one's own death, often as a result of despair, mental health conditions, or a perception of a lack of alternatives.

Intentional Action

Conduct or behavior that is performed with a specific intention or purpose by an individual.