Question 16
0.25 pts
Acme Company produces a single product and uses a standard cost
accounting system. Acme applies manufacturing overhead costs to
inventory based on direct labor hours. Here are data regarding Acme's
production activity for the current month:
What is the variable overhead rate variance?
$1,832 Favorable
$1,832 Unfavorable
$1,820 Favorable
$1,820 Unfavorable
Question 16
0.25 pts
Acme Company produces a single product and uses a standard cost
accounting system. Acme applies manufacturing overhead costs to
inventory based on direct labor hours. Here are data regarding Acme's
production activity for the current month:
Actual production of finished goods
3,000 units
Standard variable overhead hours per unit
0.20 hours
Standard variable overhead rate
$3 per hour 560 hours $3,500
Actual direct labor hours
Actual variable overhead costs
What is the variable overhead rate variance?
$1,832 Favorable
$l,832 Unfavorable
$l,82O Favorable
$l,82O Unfavorable