Cavalaris Products Uses a Standard Cost System

question 221

Multiple Choice

Cavalaris Products uses a standard cost system.Variable overhead costs are allocated based on direct labor hours.In the first quarter,Cavalaris had an unfavorable cost variance for variable overhead costs.Which of the following scenarios is a reasonable explanation for this 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:

Assault

Any word or action intended to make another person fearful of immediate physical harm; a reasonably believable threat.

Reasonably Believable

A standard of evidence which suggests that a claim or assertion is plausible based on the circumstances and available information.

Motive Behind Intent

The underlying reason or reasons prompting an individual to decide or plan to do something.

Tort Law

An area of law that deals with civil wrongs, allowing victims to claim damages for harm caused by others' actions or negligence.