Desue Corporation Makes a Product with the Following Standards for Labor

Multiple Choice

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