If Actual Direct Labor Hours (DLHs)are Less Than Standard Direct

question 120

Multiple Choice

If actual direct labor hours (DLHs) are less than standard direct labor hours allowed and overhead is applied on a DLH basis,a(n)

• A)favorable variable overhead spending variance exists.
• B)favorable variable overhead efficiency variance exists.
• C)favorable volume variance exists.
• D)unfavorable volume variance exists.

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Definitions:

Dividends

Profits distributed to shareholders as a reward for their investment in the company.

Liability Subsections

Refers to the various divisions or categories within liabilities on a balance sheet, detailing different types of obligations a company holds.

Current Liabilities

Financial obligations a company is expected to pay within one year, including accounts payable, short-term loans, and accrued expenses.

Asset Subsections

Categorizations within a company's assets on the balance sheet to provide detailed financial information.