Handerson Corporation makes a product with the following standard costs: The com

Question

Handerson Corporation makes a product with the following standard costs:

The company reported the following results concerning this product in August.

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 August is:

Multiple Choice

$825 F

$588 U

$825 U

$588 F

Standard Quantity or Hours Standard Price or Rate Direct materials 9.3 kilos $ 6.80 per kilo Direct labor 0.4 hours $ 28.00 per hour Variable overhead 0.4 hours $ 6.80 per hour

Explanation / Answer

Ans: $588U

Explanation:

Variable overhead rate variance = (AH x AR) - (AH x SR)

= $8340 - (1140 hours x 6.80 per hour)

=$8340 – $7752 =$588U

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.