Eliezrie Corporation Makes a Product with the Following Standard Costs

question 105

Multiple Choice

Eliezrie Corporation makes a product with the following standard costs:

In January the company's budgeted production was 7,400 units but the actual production was 7,500 units. The company used 45,580 kilos of the direct material and 2,030 direct labor-hours to produce this output. During the month, the company purchased 48,500 kilos of the direct material at a cost of $53,350. The actual direct labor cost was $18,473 and the actual variable overhead cost was $7,714.

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 efficiency variance for January is:

• A)$836 F
• B)$836 U
• C)$880 F
• D)$880 U

---

Definitions:

Business Writers

Professionals who specialize in creating and composing written material for business purposes, such as reports, proposals, and communications.

Ambiguous Wording

Language that is open to more than one interpretation, making it unclear or uncertain.

Indirect Strategy

A communication approach where the main point or request is presented after providing background information and building a context.

Reader's Time

The period a reader allocates to engage with written material, emphasizing the importance of respecting and valuing this time by making content engaging and worthwhile.