If the Standard Hours Allowed Are Less Than the Standard

question 90

Multiple Choice

If the standard hours allowed are less than the standard hours at normal capacity,

• A)the overhead volume variance will be unfavourable.
• B)variable overhead costs will be under-applied.
• C)the overhead controllable variance will be favourable.
• D)variable overhead costs will be over-applied.

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Definitions:

Reality Checking

The act of verifying the truth or accuracy of a belief or perception against the facts or actual experience.

Coach

A peer or manager who works with an employee to motivate the employee, help him or her develop skills, and provide reinforcement and feedback.

Motivate

To provide someone with a reason or incentive to do something.

Reinforcement

A concept in behavior psychology where the frequency of a behavior is increased by following it with a reinforcement, which can be positive or negative.