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

question 34

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: $$\begin{array} { | l | l | l | } \hline \text { Labour rate variance: } & \$ 7,000 & \mathrm {~F} \\\hline \text { Labour efficiency variance: } & \$ 12,000 & \mathrm {~F} \\\hline \text { Variable overhead efficiency variance: } & \$ 4,000 & \mathrm {~F} \\\hline \text { Number of units produced: } & 10,000 & \\\hline \text { Standard labour rate per direct labour hour: } & \$ 12 & \\\hline \text { Standard variable overhead rate per direct labour hour: } & \$ 4 & \\\hline \text { Actual labour hours used: } & 14,000 & \\\hline \text { Actual variable manufacturing overhead costs: } & \$ 58,290 & \\\hline\end{array}$$
-In a standard cost system, if the denominator activity (in hours)used to compute the predetermined overhead rate is equal to the actual activity (in hours)for the period, then there is no volume variance.

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Definitions:

Surviving

The act of continuing to live or exist, especially in spite of difficult circumstances or challenges.

Glucosamine

A natural compound found in cartilage, often used in dietary supplements to support joint health and alleviate the symptoms of arthritis.

Cytosine

A pyrimidine base found in DNA and RNA that pairs with guanine during the nucleic acid synthesis.

Base Pairs

The pairs of nucleotides (adenine with thymine, and cytosine with guanine) in DNA that form the rungs of the double helix structure, fundamental for DNA replication and genetic information.