Reference: 11-11
the Clark Company Makes a Single Product and Uses

question 101

True/False

Reference: 11-11
The Clark Company makes a single product and uses standard costing. Variable overhead is assigned to production on the basis of direct labour hours. Some data concerning this product for the month of May follow: $$\begin{array} { | l | l | l | } \hline \text { Labour rate variance: } & \$ 7,000 & \mathrm {~F} \\\hline \text { Labour efficiency variance: } & \$ 12,000 & \mathrm {~F} \\\hline \text { Variable overhead efficiency variance: } & \$ 4,000 & \mathrm {~F} \\\hline \text { Number of units produced: } & 10,000 & \\\hline \text { Standard labour rate per direct labour hour: } & \$ 12 & \\\hline \text { Standard variable overhead rate per direct labour hour: } & \$ 4 & \\\hline \text { Actual labour hours used: } & 14,000 & \\\hline \text { Actual variable manufacturing overhead costs: } & \$ 58,290 & \\\hline\end{array}$$
-Management by exception means that a manager's attention is directed toward those parts of the organization where variances between actual and budget are significant.

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Definitions:

Visual Cliff

An experimental apparatus used to measure infants' perception of depth and their fear of falling.

Depth Perception

The ability to perceive the world in three dimensions and to judge the distance of objects.

Emotional Reactions

Immediate responses to stimuli or situations that involve feelings, ranging from happiness and love to anger and fear.

Internal Locus

A psychological term referring to individuals who believe they have control over their own life events and outcomes, as opposed to external forces.