At the End of 20x5, ELM Corporation's Production Manager Estimated

question 56

Multiple Choice

At the end of 20x5, ELM Corporation's production manager estimated direct labour overtime hours at 200 for the first quarter of 20x6. At the end of the first quarter, actual overtime hours totalled 180. This difference is most likely to lead to:

• A) Favourable variable overhead spending variance
• B) Unfavourable production volume variance
• C) Favourable labour efficiency variance
• D) Unfavourable labour efficiency variance

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Definitions:

One-Fifth

A fraction equivalent to 20 percent of a whole.

Nonspectral Colors

Colors not found in the visible spectrum of light, such as magenta or pink, created by mixing different wavelengths of light.

Complementary

Things or factors that together enhance or complete each other's qualities, providing a synergistic effect.

White Light

Electromagnetic radiation that is visible to the human eye and is perceived as colorless. It contains all wavelengths of the visible spectrum.