Novelli Corporation Makes a Product Whose Variable Overhead Standards Are

question 130

Multiple Choice

Novelli Corporation makes a product whose variable overhead standards are based on direct labor-hours. The quantity standard is 0.6 hours per unit. The variable overhead rate standard is $5.00 per hour. In September the company produced 1,600 units using 950 direct labor-hours. The actual variable overhead rate was $5.10 per hour.
-The variable overhead efficiency variance for September is:

• A)$51 U
• B)$50 U
• C)$51 F
• D)$50 F

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Definitions:

Average Annual Rate

A financial term indicating the average amount of interest earned or paid per year over the life of an investment or loan.

Enrolment

The process of registering or entering into a program, course, or institution.

Compounded Semiannually

Interest calculation method where interest is added to the principal sum twice a year, leading to interest on interest.

Strip Bond

A type of bond where both the principal and regular coupon payments have been separated and are sold individually.