Fulton Company Has the Following Data Available:
Wage Expense $31,2 \times 13$

question 27

Multiple Choice

Fulton Company has the following data available:
Wage Expense, For the Year Ending December $31,2 \times 13$$\quad$$\quad$$\$ 95$
Wage Expense, For the Year Ending December $31,2 \times 12$$\quad$$\quad$$\$ 90$
What is the percentage increase or (decrease) in wage expense from 2X12 to 2X13 for Fulton Company?

• A)5)3%
• B)(5.3)%
• C)2)6%
• D)(5.6)%
• E)5)6%

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Definitions:

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the standard overhead estimated, based on the actual level of activity.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the standard variable overhead based on the actual level of activity, reflecting efficiency in using overhead resources.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead costs incurred and the standard variable overhead costs, based on efficient use of resources.

Labor Rate Variance

The difference between the actual hourly wage paid to workers and the expected (or standard) wage rate, multiplied by the total hours worked.