If Ferg Company Has a $12,000 Unfavourable Variable Overhead Efficiency

question 130

Multiple Choice

If Ferg Company has a $12,000 unfavourable variable overhead efficiency variance, which of the following statements would be TRUE?

• A)Ferg would credit the Cost of Goods Sold account to write-off the variance.
• B)Ferg used the variable overhead components more effectively than expected.
• C)Ferg made efficient use of the cost driver.
• D)Ferg used the variable overhead components and cost driver as expected.
• E)Ferg did not use the cost driver efficiently.

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Definitions:

Zygote

The initial cell formed when a new organism is produced by the union of sperm and egg cells, marking the beginning of embryonic development.

Chromosomes

Structures made of DNA and proteins found in the nucleus of most living cells, carrying genetic information in the form of genes.

Monozygotic (MZ) Twins

Twins who originate from a single fertilized egg, resulting in individuals with identical genetic makeup.

Dizygotic (DZ) Twins

Twins that are formed from two different eggs fertilized by two different sperm, also known as fraternal twins.