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

question 122

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: $$\begin{array} { | l | l | l | } \hline \text { Labour rate variance: } & \$ 7,000 & \mathrm {~F} \\\hline \text { Labour efficiency variance: } & \$ 12,000 & \mathrm {~F} \\\hline \text { Variable overhead efficiency variance: } & \$ 4,000 & \mathrm {~F} \\\hline \text { Number of units produced: } & 10,000 & \\\hline \text { Standard labour rate per direct labour hour: } & \$ 12 & \\\hline \text { Standard variable overhead rate per direct labour hour: } & \$ 4 & \\\hline \text { Actual labour hours used: } & 14,000 & \\\hline \text { Actual variable manufacturing overhead costs: } & \$ 58,290 & \\\hline\end{array}$$
-If a company using a flexible budget has a sales revenue variance, the variance results solely from differences in budgeted versus actual selling prices.

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Definitions:

Halo Effect

A cognitive bias where perceptions of one quality lead to unjustified positive or negative assessments of other qualities.

Experimenter Bias

A bias where researchers' expectations influence the outcome of a study unintentionally.

Ethical Guidelines

A set of principles designed to guide professionals in conducting their work with integrity and respect for others.

Psychological Research

The scientific study of the human mind, behavior, and mental processes through various research methodologies and experiments.