At True Colors, Inc

question 84

Multiple Choice

At True Colors, Inc., the sales representatives often argue with the production employees because promised orders are often behind schedule. The production employees claim the sales representatives frequently fail to submit orders until they are already past due. The sales representatives and the production employees are experiencing

• A)conflict between organization and environment.
• B)competition for scarce resources.
• C)intergroup conflict.
• D)interpersonal conflict.
• E)representative conflict.

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Definitions:

Labor Quantity Variance

The difference between the actual hours worked and the standard hours expected, multiplied by the standard labor rate.

Controllable Overhead Variance

Controllable overhead variance is the difference between the actual overhead costs incurred and the budgeted overhead costs that could be controlled.

Overhead Applied

The portion of overhead costs allocated to specific jobs or production activities based on a predetermined formula or rate.

Overhead Volume Variance

The difference between the budgeted and actual overhead costs due to changes in the level of production or activity.