A Work Center Produces 120 Units in a Shift

question 12

Multiple Choice

A work center produces 120 units in a shift. THe standard for that item is 100 units a shift. What is the efficiency of the work center?

• A) 1.2%
• B) 100%
• C) 120%
• D) 80%

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Definitions:

Variable Overhead

Variable overhead refers to the indirect costs of production that fluctuate with the level of output, such as utilities and materials.

Variable Costing

An accounting method that only includes variable production costs in product costs, excluding fixed costs.

Direct Materials

Raw materials that can be directly linked to the production of specific goods or services.

Variable Overhead

Expenses related to the indirect costs of production that vary with the level of output, including items such as indirect labor and maintenance expenses.