Kartman Corporation makes a product with the following standard costs: In June the company's budgeted production was 3,500 units but the actual production was 3,600 units. The company used 22,250 pounds of the direct material and 2,300 direct labor-hours to produce this output. During the month, the company purchased 25,500 pounds of the direct material at a cost of $171,180. The actual direct labor cost was $57,121 and the actual variable overhead cost was $9,031.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 June is:
A) $312 Unfavorable
B) $399 Favorable
C) $399 Unfavorable
D) $312 Favorable

Question

Kartman Corporation makes a product with the following standard costs:  In June the company's budgeted production was 3,500 units but the actual production was 3,600 units. The company used 22,250 pounds of the direct material and 2,300 direct labor-hours to produce this output. During the month, the company purchased 25,500 pounds of the direct material at a cost of $171,180. The actual direct labor cost was $57,121 and the actual variable overhead cost was $9,031.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 June is:
A) $312 Unfavorable 
B) $399 Favorable 
C) $399 Unfavorable 
D) $312 Favorable

Quizplus · Accepted Answer

The Answer of Kartman Corporation makes a product with the following standard costs:  In June the company's budgeted production was 3,500 units but the actual production was 3,600 units. The company used 22,250 pounds of the direct material and 2,300 direct labor-hours to produce this output. During the month, the company purchased 25,500 pounds of the direct material at a cost of $171,180. The actual direct labor cost was $57,121 and the actual variable overhead cost was $9,031.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 June is:
A) $312 Unfavorable 
B) $399 Favorable 
C) $399 Unfavorable 
D) $312 Favorable

Kartman Corporation Makes a Product with the Following Standard Costs