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Sande Corporation makes a product with the following standard costs: In November

ID: 2447326 • Letter: S

Question

Sande Corporation makes a product with the following standard costs: In November the company's budgeted production was 2,900 units but the actual production was 3,000 unit. The company used 27,670 grams of the direct material and 1,390 direct-labor-hours to produce output. During the month, the company purchased 31,700 grams of the direct material at a cost of $196,540. The actual direct labor cost was $29,607 and the actual variable overhead cost was $2,501 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 November isL a) $300U b) $278U c) $300F d) $278F

Explanation / Answer

Sande Corporation makes a product with the following standard costs: In November

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