Dori Castings Is a Job Order Shop That Uses a Standard

question 107

Multiple Choice

Dori Castings is a job order shop that uses a standard cost system to account for its production costs. Manufacturing overhead costs are applied to production on the basis of direct labour hours.
-A volume variance will exist for Dori in a month under which of the following conditions?

• A) When the production volume differs from sales volume.
• B) When the actual direct labour hours differ from standard hours allowed.
• C) When there is a budget variance in fixed overhead costs.
• D) When the fixed overhead applied to units of product on the basis of standard hours allowed differs from the budgeted fixed overhead.

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Definitions:

Basic Scientific Research

The initial stage of scientific inquiry aimed at gaining more comprehensive knowledge or understanding of the subject without specific applications towards processes or products in mind.

Positive Externalities

Benefits that are enjoyed by a third-party or the broader society as a result of an economic transaction or activity, without them directly participating in it.

Public Good

A good or service that is characterized by nonrivalry and nonexcludability. These characteristics typically imply that no private firm can break even when attempting to provide such products. As a result, they are often provided by governments, who pay for them using general tax revenues.

Federal Government

The national government of a federated state, which shares sovereignty with its subnational entities and is typically responsible for national defense, foreign affairs, and federal law.