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

question 4

True/False

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 unitization of fixed overhead costs is useful from a control perspective.

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Definitions:

War of 1812

A military conflict fought between the United States and the British Empire (and their respective allies) from 1812 to 1815, primarily over British restrictions on American trade and the United States' desire to expand its territory.

Louisiana Purchase

The acquisition of the territory of Louisiana by the United States from France in 1803, significantly increasing the size of the nation.

Transplanting Indians

The historical process of forcibly relocating Indigenous peoples from their ancestral lands to designated areas, often with disastrous effects on their communities.

Mississippi River

One of the longest rivers in the United States, flowing southward and serving as a crucial trade and transportation route throughout American history.