Question
Irving Corporation makes a product with the following standards for direct labor and variable overhead: Standard Quantity or Hours Standard Price or Rate Standard Cost
Irving Corporation makes a product with the following standards for direct labor and variable overhead: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct labor 0.20 hours $ 17.00 per hour $ 3.40 Variable overhead 0.20 hours $ 5.30 per hour $ 1.06 In November the company's budgeted production was 5600 units, but the actual production was 5400 units. The company used 1610 direct labor-hours to produce this output. The actual variable overhead cost was $7889. The company applies variable overhead on the basis of direct labor-hours. The variable overhead rate variance for November is:
$644 F
$432 F
$432 U
$644 U
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