Assuming That the Standard Fixed Overhead Rate Is Based on Full

question 138

Multiple Choice

Assuming that the standard fixed overhead rate is based on full capacity, the cost of available but unused productive capacity is indicated by the:

• A) factory overhead cost volume variance
• B) direct labor cost time variance
• C) direct labor cost rate variance
• D) factory overhead cost controllable variance

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Definitions:

Present Intent

A legal term referring to an individual's current intention to perform an act or designate a legal status, crucial for the validity of certain legal documents and transactions.

Definiteness

A characteristic of a contract that requires its terms to be clear enough for the parties involved to understand their obligations and rights.

Reasonable Time

An amount of time that is fair and appropriate under the circumstances to perform a legal duty or obligation.

Promissory Estoppel

A legal principle that prevents a promisor from going back on a promise when the promisee reasonably relies on that promise to their detriment.