Akao Products Uses a Standard Cost System

question 89

Multiple Choice

Akao Products uses a standard cost system.Variable overhead costs are allocated based on direct labor hours.In the first quarter,Akao had an unfavorable efficiency 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:

Operational Definition

A clear, detailed description of how a research variable is measured or manipulated in a specific study, allowing others to understand or replicate the methodology.

Puzzles

Problems or enigmas designed to test ingenuity, knowledge, or problem-solving ability, often used as a form of entertainment or mental exercise.

Independent Variable

The variable in an experiment that is manipulated by the researcher to examine its impact on the dependent variable.

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A qualitative research approach focused on understanding and describing experiences from the perspective of those who live them.