Irving Corporation makes a product with the following standards for direct labor and variable overhead: standard Quantity or Standard Price or Standard Cost Per Hours Rate Unit Direct labor Variable overhead 0.2 hours $15.00 per hour $ 5.10 per hour $3.00 0.2 hours $1.02 n November the company's budgeted production was 5,400 units, but the actual production was 5,200 units. The company used 1,660 direct labor-hours to produce this output. The actual variable overhead cost was $7802. The company applies variable overhead on the basis of direct labor-hours The variable overhead rate variance for November is Multiple Choice $416 U $664 U $664 F
Irving Corporation makes a product with the following standards for direct labor and variable overhead: standard Quantity or Standard Price or Standard Cost Per Hours Rate Unit Direct labor Variable overhead 0.2 hours $15.00 per hour $ 5.10 per hour $3.00 0.2 hours $1.02 n November the company's budgeted production was 5,400 units, but the actual production was 5,200 units. The company used 1,660 direct labor-hours to produce this output. The actual variable overhead cost was $7802. The company applies variable overhead on the basis of direct labor-hours The variable overhead rate variance for November is Multiple Choice $416 U $664 U $664 F
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
9q-18
Transcribed Image Text:Irving Corporation makes a product with the following standards for direct labor and variable overhead:
Standard Quantity or
Standard Price or
Standard Cost Per
Hours
Rate
Unit
Direct labor
0.2 hours
$15.00 per hour
$ 5.10 per hour
$3.00
Variable overhead
0.2 hours
$1.02
In November the company's budgeted production was 5,400 units, but the actual production was 5,200 units. The company used 1,660 direct labor-hours to produce this output. The
actual variable overhead cost was $7,802. The company applies variable overhead on the basis of direct labor-hours.
The variable overhead rate variance for November is:
Multiple Choice
$416 U
$664 U
$664 F
Transcribed Image Text:Variable overhead
0.2 hours
$ 5.10 per hour
$1.92
In November the company's budgeted production was 5,400 units, but the actual production was 5,200 units. The company used 1,660 direct labor-hours to produce this output. The
actual variable overhead cost was $7,802. The company applies variable overhead on the basis of direct labor-hours.
The variable overhead rate variance for November is:
Multiple Choice
$416 U
$664 U
$664 F
$416 F
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