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

question 6

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: $$\begin{array} { | l | l | l | } \hline \text { Labour rate variance: } & \$ 7,000 & \mathrm {~F} \\\hline \text { Labour efficiency variance: } & \$ 12,000 & \mathrm {~F} \\\hline \text { Variable overhead efficiency variance: } & \$ 4,000 & \mathrm {~F} \\\hline \text { Number of units produced: } & 10,000 & \\\hline \text { Standard labour rate per direct labour hour: } & \$ 12 & \\\hline \text { Standard variable overhead rate per direct labour hour: } & \$ 4 & \\\hline \text { Actual labour hours used: } & 14,000 & \\\hline \text { Actual variable manufacturing overhead costs: } & \$ 58,290 & \\\hline\end{array}$$
-When all direct material units purchased in a period are not used in production for that period, both direct material price and direct material quantity variances may be calculated for the period.

---

Definitions:

Suicide

Purposeful taking of one’s own life.

Diagnosis

The identification of the nature and cause of a certain phenomenon, often used in the context of determining a medical condition through examination and assessment.

Siblings

Brothers and sisters who share one or both parents in common, having a unique and enduring biological and emotional relationship.

Negative Symptoms

Refers to the absence or diminution of normal social and emotional responses in psychiatric conditions, such as schizophrenia.