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

question 134

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 standard direct labour rate should not include fringe benefits.

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Definitions:

Top-down Processes

Cognitive processes that are guided by higher-level mental processes, such as experience, expectations, and motivations.

Food Webs

Complex diagrams that show the feeding relationships among species within a community, highlighting who eats whom and the transfer of energy through the ecosystem.

Keystone Species

A species that plays a critical role in maintaining the structure of an ecological community, affecting many other organisms in the ecosystem and helping to determine the types and numbers of various other species in the community.

Ecological Niche

The specific role or function of an organism or species in an ecosystem, including its use of resources and relationships with other organisms.