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Oddo Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 4.0
Oddo Corporation makes a product with the following standard costs: |
Standard Quantity or Hours | Standard Price or Rate | Standard Cost Per Unit | |
Direct materials | 4.0 ounces | $8.40 per ounce | $33.60 |
Direct labor | 0.9 hours | $30.00 per hour | $27.00 |
Variable overhead | 0.9 hours | $8.00 per hour | $7.20 |
The company reported the following results concerning this product in December. |
Originally budgeted output | 4,540 | units |
Actual output | 4,340 | units |
Raw materials used in production | 17,640 | ounces |
Actual direct labor-hours | 4,186 | hours |
Purchases of raw materials | 19,460 | ounces |
Actual price of raw materials | $8.20 | per ounce |
Actual direct labor rate | $19.70 | per hour |
Actual variable overhead rate | $8.20 | 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 December is: |
A. $837 U
B. $837 F
C. $781 F
D. $781 U
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