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:

Knowledge Workers

Are employees whose jobs are primarily concerned with the acquisition and application of knowledge. They contribute to an organization through what they know and how they can apply what they know.

Authoritative Leader

A leadership style characterized by individual control over all decisions and little input from group members, often focusing on clear, explicit directives.

Specialized Training

Training programs designed to develop expertise in a specific area or skill.

Blue-Collar Workers

Employees who perform manual labor or skilled trade jobs, often involving physical work.