Reference: 11-11
the Clark Company Makes a Single Product and Uses

question 49

Multiple Choice

Reference: 11-11
The Clark Company makes a single product and uses standard costing. Variable overhead is assigned to production on the basis of direct labour hours. Some data concerning this product for the month of May follow: $$\begin{array} { | l | l | l | } \hline \text { Labour rate variance: } & \$ 7,000 & \mathrm {~F} \\\hline \text { Labour efficiency variance: } & \$ 12,000 & \mathrm {~F} \\\hline \text { Variable overhead efficiency variance: } & \$ 4,000 & \mathrm {~F} \\\hline \text { Number of units produced: } & 10,000 & \\\hline \text { Standard labour rate per direct labour hour: } & \$ 12 & \\\hline \text { Standard variable overhead rate per direct labour hour: } & \$ 4 & \\\hline \text { Actual labour hours used: } & 14,000 & \\\hline \text { Actual variable manufacturing overhead costs: } & \$ 58,290 & \\\hline\end{array}$$
-The standard hours allowed to make one unit of finished product are:

• A)1.5.
• B)1.0.
• C)1.2.
• D)2.0.

---

Definitions:

Success

The achievement of a goal or target, often measured by specific criteria or standards, such as profit, recognition, or accomplishment of personal or professional objectives.

Targeting Strategy

A marketing approach that involves identifying and reaching specific groups within a broader market, based on shared characteristics or needs.

Hamburgers

A popular food item consisting of ground meat, typically beef, formed into a patty and served in a split bun, often with various condiments and toppings.

Green Chile Burgers

A type of hamburger that includes green chiles as a primary ingredient, giving it a distinctive spicy flavor.