Reference: 11-13 The Upton Company Employs a Standard Costing System in Which

question 91

Multiple Choice

Reference: 11-13
The Upton Company employs a standard costing system in which variable overhead is assigned to production on the basis of direct labour hours. Data for the month of February include the following:
Variable manufacturing overhead cost incurred: $48,700
Total variable overhead variance: $300 F
Standard hours allowed for actual production: 7,000
Actual direct labour hours worked: 6,840
-An unfavourable labour efficiency variance indicates that:

• A)the actual labour rate was higher than the standard labour rate.
• B)actual labour hours worked exceeded standard labour hours for the production level achieved.
• C)the labour rate variance must also be unfavourable.
• D)overtime labour was used during the period.

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Definitions:

CNS Stimulants

Drugs that enhance the activity of the central nervous system, often used to treat conditions like ADHD and narcolepsy by increasing alertness and focus.

ADHD

Attention Deficit Hyperactivity Disorder, a neurodevelopmental disorder characterized by inattention, hyperactivity, and impulsivity.

Tourette's Disorder

A neurological disorder characterized by involuntary and repetitive movements or vocalizations known as tics, typically appearing in childhood.

Tics

Tics are sudden, repetitive, nonrhythmic motor movements or vocalizations, often characterized by brief, intermittent movements or noises.