Use the Following to Answer Questions

question 336

Multiple Choice

Use the following to answer questions:
-(Table: Cost Data) Look at the table Cost Data. The average variable cost of producing 2 purses is:

• A) $190.
• B) $70.
• C) $50.
• D) $35.

---

Definitions:

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the standard cost of variable overhead allocated for the actual production achieved.

Variable Overhead Rate Variances

The difference between the actual variable overhead incurred and the standard cost allocated, based on actual production activity.

Indirect Labor

Costs associated with employees who are not directly involved in the production of goods or services, such as maintenance and clerical staff.

Precision Drills

Specialized tools or equipment designed for creating holes with exact dimensions and tolerances.