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Desue Corporation Makes a Product with the Following Standards for Labor

Question 151

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


A) $366 U
B) $366 F
C) $378 F
D) $378 U

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