Table 13-13 -Refer to Table 13-13.What Is Variable Cost When Output Equals

question 334

Multiple Choice

Table 13-13

-Refer to Table 13-13.What is variable cost when output equals 30 units?

• A) $4
• B) $40
• C) $90
• D) $130

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Definitions:

Rate Variance

The difference between the expected standard cost and the actual cost incurred, calculated for direct labor rate, overhead rate, or material price.

Standard Direct Labor-Hours

The estimated hours required to produce a units based on standard efficiency and productivity levels.

Labor Efficiency Variance

The difference between the actual hours worked to produce a good or service and the standard hours expected, multiplied by the standard labor rate.

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process, often used as a basis for allocating overhead.