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Delvig [45]
3 years ago
11

Brummer Corporation makes a product whose variable overhead standards are based on direct labor-hours. The quantity standard is

0.1 hours per unit. The variable overhead rate standard is $8.00 per hour. In January the company produced 8,700 units using 910 direct labor-hours. The actual variable overhead rate was $7.90 per hour. The variable overhead efficiency variance for January is:________
a. $320 F
b. $316 U
c. $320 U
d. $316 F
Business
1 answer:
Sonja [21]3 years ago
8 0

Answer:

c) Variable overhead efficiency variance =  $320 Unfavorable

Explanation:

<em>The variable overhead efficiency variance</em><em> is the difference between the </em><em>actual hours</em><em> and the </em><em>standard hours for the actual output</em><em> valued at the standard variable overhead rate per hour.</em>

                                                                                      Hours

8700 units should have taken (8700× 0.1)                   870

but took                                                                           <u>910</u>

                                                                                         40   Unfavorable

× Standard rate per hour                                       ×        <u>$8</u>

Variable overhead efficiency variance                      <u>$320</u> Unfavorable

Variable overhead efficiency variance =  $320 Unfavorable

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Explanation:

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Explanation:

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In the information provided, the respondents were selected from a group of people who on a balance of probability were already inclined to decline because it was a list of dissatisfied customers. The chances of them declining to respond or responding with a negative were higher than the chances of them indicating that they would buy and this defeats the purpose of the research. The research ought to have also included a sample of respondents who didn't have the product, who had enjoyed the services of the company and were content, those who didn't even know what the product did until they got the survey.

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