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 rate variance for December is:
A)$366 U
B)$366 F
C)$378 F
D)$378 U

Question

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 rate variance for December is:
A)$366 U 
B)$366 F 
C)$378 F 
D)$378 U

Quizplus · Accepted Answer

The Answer of 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 rate variance for December is:
A)$366 U 
B)$366 F 
C)$378 F 
D)$378 U

Desue Corporation Makes a Product with the Following Standards for Labor