If Variable Manufacturing Overhead Is Applied on the Basis of Direct

question 145

Multiple Choice

If variable manufacturing overhead is applied on the basis of direct labor-hours and the variable overhead rate variance is favorable, then:

• A) the actual variable overhead rate exceeded the standard rate.
• B) the standard variable overhead rate exceeded the actual rate.
• C) the actual direct labor-hours exceeded the standard direct labor-hours allowed for the actual output.
• D) the standard direct labor-hours allowed for the actual output exceeded the actual hours.

---

Definitions:

Processed

Refers to information, materials, or data that has been analyzed, manipulated, or modified in some manner.

Attended To

Focused on or paid special attention to; involves the allocation of cognitive resources towards specific stimuli or tasks.

Dichotic Listening Task

An experimental task used in psychology to study selective attention and the lateralization of brain function, involving presenting two different auditory messages simultaneously, one to each ear.