Question
he Clark Company makes a single product and uses standard costing. Variable overhead is assigned to production based on direct labour hours. Some data concerning
he Clark Company makes a single product and uses standard costing. Variable overhead is assigned to production based on direct labour hours. Some data concerning this product for the month of May follow:
Labour rate variance:$7,000 FLabour efficiency variance:$12,000 FVariable overhead efficiency variance:$4,000 FNumber of units produced:10,000Standard labour rate per direct labour hour:$12Standard variable overhead rate per direct labour hour:$4Actual labour hours used:14,000Actual variable manufacturing overhead costs:$58,290
The total standard cost for variable overhead for May was:
Multiple Choice
- $40,000.
- $50,000.
- $56,000.
- $60,000.
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