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

question 16

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: $$\begin{array} { | l | l | l | } \hline \text { Labour rate variance: } & \$ 7,000 & \mathrm {~F} \\\hline \text { Labour efficiency variance: } & \$ 12,000 & \mathrm {~F} \\\hline \text { Variable overhead efficiency variance: } & \$ 4,000 & \mathrm {~F} \\\hline \text { Number of units produced: } & 10,000 & \\\hline \text { Standard labour rate per direct labour hour: } & \$ 12 & \\\hline \text { Standard variable overhead rate per direct labour hour: } & \$ 4 & \\\hline \text { Actual labour hours used: } & 14,000 & \\\hline \text { Actual variable manufacturing overhead costs: } & \$ 58,290 & \\\hline\end{array}$$
-If a company has a favourable labour efficiency variance, it used less units of labour than were budgeted for the output units achieved.

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Definitions:

Negation

The process of denying or contradicting the truth of a statement.

Main Connective

In logic, the primary logical operator that determines the overall structure and truth-value of a compound proposition.

Main Connective

The main connective in a logical expression is the operator that determines the truth value of the entire expression, generally by combining the truth values of its component parts.

Symbolize

To represent or stand for something else, often an abstract idea, by means of symbols.