Marshall Company Uses a Standard Cost System

question 208

Multiple Choice

Marshall Company uses a standard cost system.Variable overhead costs are allocated based on direct labor hours.In the first quarter,Marshall had a favorable efficiency variance for variable overhead costs.Which of the following scenarios is a reasonable explanation for this variance?

• A) The actual number of direct labor hours was lower than the budgeted hours.
• B) The actual variable overhead costs were higher than the budgeted costs.
• C) The actual variable overhead costs were lower than the budgeted costs.
• D) The actual number of direct labor hours was higher than the budgeted hours.

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Definitions:

Main Work Values

Fundamental beliefs that guide preferences and behaviors in the workplace, including priorities like job security, salary, and work-life balance.

Self Competency

The understanding and utilization of one's own skills and abilities to effectively accomplish tasks and goals.

Agreeableness

A personality trait characterized by warmth, kindness, and a cooperative and sympathetic attitude towards others.

Personality Development

The growth and development of the aspects of a person's character and psychological traits over time.