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

question 130

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: $$\begin{array} { | l | l | l | } \hline \text { Labour rate variance: } & \$ 7,000 & \mathrm {~F} \\\hline \text { Labour efficiency variance: } & \$ 12,000 & \mathrm {~F} \\\hline \text { Variable overhead efficiency variance: } & \$ 4,000 & \mathrm {~F} \\\hline \text { Number of units produced: } & 10,000 & \\\hline \text { Standard labour rate per direct labour hour: } & \$ 12 & \\\hline \text { Standard variable overhead rate per direct labour hour: } & \$ 4 & \\\hline \text { Actual labour hours used: } & 14,000 & \\\hline \text { Actual variable manufacturing overhead costs: } & \$ 58,290 & \\\hline\end{array}$$
-In a standard costing system, under-applied or over-applied fixed overhead is equal to the sum of the fixed overhead budget variance and the fixed overhead volume variance.

---

Definitions:

Multiple Contusions

Multiple Contusions refer to numerous areas of bruising on the body, often resulting from blunt force trauma, indicating impacts to various body parts.

Motor Vehicle

A motor vehicle is a self-propelled transportation machine primarily used for passenger or goods movement on roads.

Vacuum Assisted Closure

A medical treatment that uses suction (negative pressure) to heal wounds by drawing out excess fluids and promoting tissue growth.

E-Coli

Escherichia coli, a type of bacteria that normally lives in the intestines of people and animals; some strains can cause intestinal infection.