Question

Oddo Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost Per Unit
Direct materials	4.3 grams	$3.00 per gram	$12.90
Direct labor	0.7 hours	$10.00 per hour	$7.00
Variable overhead	0.7 hours	$3.00 per hour	$2.10

The company reported the following results concerning this product in November.

Originally budgeted output	9,700	units
Actual output	9,800	units
Raw materials used in production	44,930	grams
Purchases of raw materials	47,420	grams
Actual direct labor-hours	7,990	hours
Actual cost of raw materials purchases	$132,560
Actual direct labor cost	$125,253
Actual variable overhead cost	$21,526

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 November is:

$2,444 F

$2,310 U

$2,444 U

$2,310 F

Answer 1

The answer has been presented in the supporting sheets. All the parts has been solved with detailed explanation and format. For detailed answers refer to the supporting sheets.