Handerson Corporation makes a product with the following standard costs: The company reported the following results concerning this product in August.
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:
A) $640 Favorable
B) $580 Unfavorable
C) $640 Unfavorable
D) $580 Favorable

Question

Handerson Corporation makes a product with the following standard costs:  The company reported the following results concerning this product in August.
 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:
A) $640 Favorable 
B) $580 Unfavorable 
C) $640 Unfavorable 
D) $580 Favorable

Quizplus · Accepted Answer

The Answer of Handerson Corporation makes a product with the following standard costs:  The company reported the following results concerning this product in August.
 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:
A) $640 Favorable 
B) $580 Unfavorable 
C) $640 Unfavorable 
D) $580 Favorable

Handerson Corporation Makes a Product with the Following Standard Costs