Zacher Corporation makes a product with the following standards for direct labor and variable overhead: In February the company's budgeted production was 6,900 units, but the actual production was 7,000 units. The company used 1,980 direct labor-hours to produce this output. The actual variable overhead cost was $10,296. The company applies variable overhead on the basis of direct labor-hours. The variable overhead rate variance for February is:
A)$420 U
B)$420 F
C)$396 F
D)$396 U

Question

Zacher Corporation makes a product with the following standards for direct labor and variable overhead:  In February the company's budgeted production was 6,900 units, but the actual production was 7,000 units. The company used 1,980 direct labor-hours to produce this output. The actual variable overhead cost was $10,296. The company applies variable overhead on the basis of direct labor-hours. The variable overhead rate variance for February is:
A)$420 U 
B)$420 F 
C)$396 F 
D)$396 U

Quizplus · Accepted Answer

The Answer of Zacher Corporation makes a product with the following standards for direct labor and variable overhead:  In February the company's budgeted production was 6,900 units, but the actual production was 7,000 units. The company used 1,980 direct labor-hours to produce this output. The actual variable overhead cost was $10,296. The company applies variable overhead on the basis of direct labor-hours. The variable overhead rate variance for February is:
A)$420 U 
B)$420 F 
C)$396 F 
D)$396 U

Zacher Corporation Makes a Product with the Following Standards for Direct