A Work Centre Had Planned Outputs of 10,15,13, and 20

question 106

Multiple Choice

A work centre had planned outputs of 10,15,13, and 20 hours with actual outputs of 12, 14, 13, and 18 hours. The cumulative deviation in output is

• A) 0.
• B) 1.
• C) -1.
• D) 58.
• E) unable to determine with given information.

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Definitions:

Variable Selling Expense

Expenses that fluctuate in direct proportion to sales volume, including commissions and freight fees.

Fixed Manufacturing Overhead

Expenses related to manufacturing that remain constant regardless of the number of units produced, including property taxes and rent for factory buildings.

Direct Labour

The work performed by individuals directly involved in the manufacturing of products or providing services, whose costs are directly attributable to the products or services.

Direct Materials

The raw materials and components that are directly used in the manufacturing of a product and can be directly attributed to that product.