Quality Brand Products Uses Standard Costing to Manage Their Direct

question 104

Multiple Choice

Quality Brand Products uses standard costing to manage their direct costs and their overhead costs. Overhead costs are allocated based on direct labor hours. In the first quarter, Quality Brand had an unfavorable cost variance for their variable overhead costs. Which of the following scenarios would be a reasonable explanation for that variance?

• A)The actual number of direct labor hours was lower than the budgeted hours.
• B)The actual variable overhead costs were higher than the budgeted costs.
• C)The actual variable overhead costs were lower than the budgeted costs.
• D)The actual number of direct labor hours was higher than the budgeted hours.

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Definitions:

Iroquois Confederacy

A historical alliance of Native American tribes in Northeast North America, known for its sophisticated political system and influence on democratic principles.

Anglo-American Conflict

Historical disputes or wars between the British (Anglo) and Americans, including but not limited to the American Revolution and the War of 1812.

Joseph And Mary Brant

A brother and sister who were influential Mohawk leaders, with Joseph Brant being a military leader who sided with the British during the American Revolutionary War.

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A highly contagious and deadly disease caused by the variola virus, eradicated in 1980 through vaccination efforts.