Question
Higgins Manufacturing makes a product with the following standard costs: The company produced 4,100 units in April using 5,380 liters of direct material and 2,610
Higgins Manufacturing makes a product with the following standard costs: The company produced 4,100 units in April using 5,380 liters of direct material and 2,610 direct labor-hours. During the month, the company purchased 6,000 liters of the direct material at $5.80 per liter. The actual direct labor rate was $19.80 per hour and the actual variable overhead rate was $2.90 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 April is:
Select one:
a. $261 U
b. $246 F
c. $261 F
d. $246 U
Higgins Manufacturing makes a product with the following standard costs: The company produced 4,100 units in April using 5,380 liters of direct material and 2,610 direct labor-hours. During the month, the company purchased 6,000 liters of the direct material at $5.80 per liter. The actual direct labor rate was $19.80 per hour and the actual variable overhead rate was $2.90 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 April is: Select one: a. $261 U b. $246 F c. $261 F d. $246 UStep by Step Solution
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