Doogan Corporation makes a product with the following standard costs: The company produced 5,300 units in January using 39,410 grams of direct material and 2,390 direct labor-hours. During the month, the company purchased 44,500 grams of the direct material at $1.80 per gram. The actual direct labor rate was $20.30 per hour and the actual variable overhead rate was $6.90 per hour.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 January is:
A) $478 Unfavorable
B) $530 Favorable
C) $478 Favorable
D) $530 Unfavorable

Question

Doogan Corporation makes a product with the following standard costs:  The company produced 5,300 units in January using 39,410 grams of direct material and 2,390 direct labor-hours. During the month, the company purchased 44,500 grams of the direct material at $1.80 per gram. The actual direct labor rate was $20.30 per hour and the actual variable overhead rate was $6.90 per hour.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 January is:
A) $478 Unfavorable 
B) $530 Favorable 
C) $478 Favorable 
D) $530 Unfavorable

Quizplus · Accepted Answer

The Answer of Doogan Corporation makes a product with the following standard costs:  The company produced 5,300 units in January using 39,410 grams of direct material and 2,390 direct labor-hours. During the month, the company purchased 44,500 grams of the direct material at $1.80 per gram. The actual direct labor rate was $20.30 per hour and the actual variable overhead rate was $6.90 per hour.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 January is:
A) $478 Unfavorable 
B) $530 Favorable 
C) $478 Favorable 
D) $530 Unfavorable

Doogan Corporation Makes a Product with the Following Standard Costs