Smithville Uses Labour Hours to Apply Variable Overhead to Production

question 31

Multiple Choice

Smithville uses labour hours to apply variable overhead to production. If the company's workers were very inefficient during the period, which of the following statements would be true about the variable-overhead efficiency variance?

• A)The variance would be favourable.
• B)The variance would be unfavourable.
• C)The nature of the variance (favourable or unfavourable) would be unknown based on the facts presented.
• D)The variance would be the same amount as the labour efficiency variance.
• E)The variance would be the same amount as the fixed overhead volume variance.

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Definitions:

Axon Hillock

The cone-shaped area of a neuron where the cell body transitions to the axon, and from which action potentials are initiated.

Democracy

A form of government in which power is vested in the hands of the people, either directly or through elected representatives.

EPSPs

Excitatory Postsynaptic Potentials, which are temporary increases in postsynaptic membrane potential due to the flow of positively charged ions into the postsynaptic cell, making it more likely to fire an action potential.

Excitatory Postsynaptic Potentials

Temporary increases in membrane potential in a postsynaptic neuron, making the neuron more likely to fire an action potential.