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

question 28

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 variable overhead spending variance for May was:

• A)$1,710 F.
• B)$2,290 U.
• C)$2,290 F.
• D)$1,710 U.

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Definitions:

Uneven Enforcement

A situation where laws, rules, or regulations are applied inconsistently, leading to unfair or discriminatory practices.

Whistle-Blower

A Whistle-Blower is an individual who exposes illegal or unethical activities within an organization to the public or higher authorities.

Legal Rulings

Official decisions made by a court or a judge regarding disputes or legal questions that have been presented for resolution.

Socially Responsible

Pertains to businesses or individuals acting in a way that benefits society and the environment, beyond legal requirements.