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Desue Corporation Makes a Product with the Following Standards for Labor

Question 43

Multiple Choice

Desue Corporation makes a product with the following standards for labor and variable overhead: 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 efficiency variance for December is: A) $140 F B) $128 F C) $128 U D) $140 U 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 efficiency variance for December is:


A) $140 F
B) $128 F
C) $128 U
D) $140 U

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