Handerson Corporation makes a product with the following standard costs: Standard Quantity or Hours 9.2 kilos 0.4 hours Direct materials Direct labor Variable overhead 0.4 hours The company reported the following results concerning this product in August Actual output Raw materials used in production Purchases of raw materials Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost Multiple Choice Standard Price or Rate $ 6.70 per kilo $ 27.00 per hour $ 6.70 per hour 3,900 units 29,730 kilos 32,300 kilos 1,130 hours $ 202,920 $ 23,436 $ 8,240 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:
Handerson Corporation makes a product with the following standard costs: Standard Quantity or Hours 9.2 kilos 0.4 hours Direct materials Direct labor Variable overhead 0.4 hours The company reported the following results concerning this product in August Actual output Raw materials used in production Purchases of raw materials Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost Multiple Choice Standard Price or Rate $ 6.70 per kilo $ 27.00 per hour $ 6.70 per hour 3,900 units 29,730 kilos 32,300 kilos 1,130 hours $ 202,920 $ 23,436 $ 8,240 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:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Handerson Corporation makes a product with the following standard costs:
Standard Quantity
or Hours
9.2 kilos
Direct materials
Direct labor.
0.4 hours
Variable overhead
0.4 hours
The company reported the following results concerning this product in August
Actual output
Raw materials used in production
Purchases of raw materials.
Actual direct labor-hours
Actual cost of raw materials purchases
Actual direct labor cost
Actual variable overhead cost
Multiple Choice
Standard Price or
Rate
$ 6.70 per kilo
$ 27.00 per hour
$ 6.70 per hour
3,900 units
29,730 kilos
32,300 kilos
1,130 hours
$ 202,920
$ 23,436
$ 8,240
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:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8d27235d-d881-4d40-83cc-2bdca25ec252%2Fc9c6070f-fba2-4a90-b943-efcd29ffc336%2Ffh81z9tb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Handerson Corporation makes a product with the following standard costs:
Standard Quantity
or Hours
9.2 kilos
Direct materials
Direct labor.
0.4 hours
Variable overhead
0.4 hours
The company reported the following results concerning this product in August
Actual output
Raw materials used in production
Purchases of raw materials.
Actual direct labor-hours
Actual cost of raw materials purchases
Actual direct labor cost
Actual variable overhead cost
Multiple Choice
Standard Price or
Rate
$ 6.70 per kilo
$ 27.00 per hour
$ 6.70 per hour
3,900 units
29,730 kilos
32,300 kilos
1,130 hours
$ 202,920
$ 23,436
$ 8,240
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
$924 F
$924 U
$669 U
$669 F
A](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8d27235d-d881-4d40-83cc-2bdca25ec252%2Fc9c6070f-fba2-4a90-b943-efcd29ffc336%2Fbjapn01_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Multiple Choice
$924 F
$924 U
$669 U
$669 F
A
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