Desue Corporation Makes a Product with the Following Standards for Labor

question 131

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 efficiency variance for December is:

• A)$140 F
• B)$128 F
• C)$128 U
• D)$140 U

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Definitions:

Economic Policy

The strategies and actions taken by a government to manage the economy and influence economic conditions including taxation, government budgets, and interest rates.

Loopholes

Provisions or omissions in laws, taxes, or contracts that allow individuals or entities to avoid or circumvent their intended effect, often leading to exploitation.

Businesses Behavior

The patterns, practices, and ethical decisions made by companies in the pursuit of their objectives, including how they interact with their stakeholders, the environment, and the economy.

Standing to Sue

The legal right of an individual or entity to initiate a lawsuit, contingent upon having a sufficient connection to and harm from the law or action challenged.