If a Company That Applies Variable Overhead on the Basis

question 53

Multiple Choice

If a company that applies variable overhead on the basis of direct labor hours records an unfavorable direct labor efficiency variance,the variable overhead efficiency variance will be

• A)unfavorable.
• B)favorable.
• C)zero.
• D)undeterminable.

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Definitions:

Legal Tender

Coins and paper money officially declared to be acceptable for the settlement of financial debts.

Car Importer

A company or individual that buys foreign cars and brings them into a country to sell.

Drug Trafficking

The illegal trade involving the cultivation, manufacture, distribution, and sale of substances which are subject to drug prohibition laws.

Balance Of Payments

A record of all transactions made between one particular country and all other countries during a specified period, showing the total inflows and outflows of money.