In Europe, the Typical Container of Fruit and Yogurt Is

question 79

Multiple Choice

In Europe, the typical container of fruit and yogurt is roughly 6 ounces. In the United States, the same food item is usually packaged in 8-ounce containers. The unit bias suggests that:

• A) a French person in the United States would be likely to eat the entire container, even though it contains 25% more than the typical French serving.
• B) an American visiting Paris would almost certainly miss the extra 2 ounces of yogurt.
• C) a French person visiting the United States would carefully evaluate the differences in packaging to ensure that he or she does not consume more than usual.
• D) all people would be unsatisfied with the 6-ounce serving in France.

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Definitions:

Variable Overhead Efficiency Variance

The difference between the actual variable overhead based on hours worked and the standard cost of variable overhead for those hours.

Standard Variable Overhead Rate

The predetermined rate at which variable overhead costs are applied to production activities, based on an expected level of activity.

Actual Total Variable Overhead Cost

The actual incurred costs that vary with production volume, such as raw materials and direct labor.