If Actual Direct Labor Hours (DLHs)are Less Than Standard Direct

question 120

Multiple Choice

If actual direct labor hours (DLHs) are less than standard direct labor hours allowed and overhead is applied on a DLH basis,a(n)

• A)favorable variable overhead spending variance exists.
• B)favorable variable overhead efficiency variance exists.
• C)favorable volume variance exists.
• D)unfavorable volume variance exists.

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Definitions:

Lowest Terms

A fraction that cannot be reduced by any common divisor.

Fractions

Number expressions of one or more equal parts of whole units.

Improper Fractions

Improper fractions are fractions where the numerator (the top number) is greater than or equal to the denominator (the bottom number), representing a value equal to or greater than one.

Mixed Numbers

A number consisting of an integer and a proper fraction.