The Apoundright Company Uses Standard Costing and Has Established the Following

question 91

Multiple Choice

The Apoundright Company uses standard costing and has established the following standards for its single product:
Direct materials: 2 gallons at $3 per gallon
Direct labor: 0.5 hours at $8 per hour
Variable overhead: 0.5 hours at $2 per hour
During November, the company made 4,000 units and incurred the following costs:
Direct materials purchased: 8,100 gallons at $3.10 per gallon
Direct materials used: 7,600 gallons
Direct labor used: 2,200 hours at $8.25 per hour
Actual variable overhead: $4,175
The company applies variable overhead to products on the basis of standard direct labor-hours.
-The total variable overhead variance (including both the rate and efficiency variances) for November was:

• A) $175 U
• B) $225 F
• C) $225 U
• D) $400 U

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Definitions:

Age

A measure of the time an individual has lived, typically expressed in years.

Universal Grammar

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Basic Grammar

The foundational rules and principles that govern the structure of sentences in a language.

Language Acquisition Device

A hypothetical brain mechanism proposed by linguist Noam Chomsky to explain the innate ability of children to learn language rapidly and efficiently.