Variable Manufacturing Overhead Is Applied to Products on the Basis

question 48

Multiple Choice

Variable manufacturing overhead is applied to products on the basis of standard direct labor hours. If the direct labor efficiency variance is unfavorable, the variable overhead efficiency variance will be: (CMA adapted)

• A) favorable.
• B) unfavorable.
• C) either favorable or unfavorable.
• D) zero.

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Definitions:

McClelland's Model

A psychological theory that identifies three primary motivators in people: the need for achievement, the need for affiliation, and the need for power.

Achievement Motivation

The drive or inner force that propels individuals toward attaining their goals and measuring their successes.

U.S. Population

The total number of people living in the United States of America, a demographic figure subject to change due to factors such as birth rates, death rates, and immigration.

McClelland's Model

A psychological theory that describes human motivation in terms of three predominant needs: achievement, power, and affiliation.