A Manufacturing Company That Has Only One Product Has Established

question 28

Multiple Choice

A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its variable manufacturing overhead standards on direct labor-hours.
The following data pertain to operations for the last month:

-What is the variable overhead efficiency variance for the month?

• A) $11,076 U
• B) $11,037 F
• C) $11,037 U
• D) $216 U

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Definitions:

Long Run

A period in which all factors of production and costs are variable, allowing full industry adjustment.

Labor Supply

Refers to the total hours that workers or the labor force are willing to work at a given wage rate.

Apple Pickers

Workers or laborers who specialize in harvesting apples from orchards during the picking season.

Price Of Crude Oil

This refers to the cost at which crude oil is bought and sold in the global market, affecting various sectors including energy, transport, and manufacturing.