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

question 34

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 cost system, if the denominator activity (in hours)used to compute the predetermined overhead rate is equal to the actual activity (in hours)for the period, then there is no volume variance.

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Definitions:

Younger Sibling

A sibling who is born after another child in the same family, often having a unique social and developmental relationship with other family members.

Affluent Family

A household characterized by wealth and financial abundance, often associated with access to high-quality education, healthcare, and living conditions.

Nuclear Family

A family unit consisting of two parents and their children, living together as a single household.

Military Family

A family where one or more members are serving in the military, often facing unique challenges such as frequent relocations.