Lack of Enough Sales Orders to Keep a Factory Operating

question 41

Multiple Choice

Lack of enough sales orders to keep a factory operating at normal capacity results in an unfavorable:

• A) direct materials quantity variance.
• B) fixed factory overhead volume variance.
• C) budgeted variable factory overhead variance.
• D) fixed factory overhead controllable variance.

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Definitions:

PM Service

Preventive Maintenance Service, a routine maintenance practice designed to keep vehicles running efficiently by preventing major issues before they occur.

S-cam Profile

A specific shape or contour of an S-cam, which is part of a drum brake system in large vehicles, responsible for transforming the motion of brake actuators into a force that applies the brakes.

Lithium-soap Grease

A type of lubricant made from lithium soap, known for its high resistance to water and its use in automotive and industrial applications to reduce friction and protect against corrosion.

API GL-5

A classification of gear lubricant specified by the American Petroleum Institute, indicating it’s suitable for high-pressure conditions and hypoid gears, commonly used in automotive axles.