When Machine-Hours Are Used as an Overhead Cost-Allocation Base and the Unexpected

question 60

Multiple Choice

When machine-hours are used as an overhead cost-allocation base and the unexpected purchase of a new machine results in fewer expenditures for machine maintenance,the MOST likely result would be to report a(n) :

• A)unfavourable variable overhead efficiency variance.
• B)unfavourable production-volume variance.
• C)favourable variable overhead spending variance.
• D)favourable fixed overhead flexible-budget variance.

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Definitions:

Vascular Strand

Vascular strand refers to a bundle of plant tissues that includes xylem and phloem, conducting water, nutrients, and sugars throughout the plant.

Microphylls

Small, simple leaves with a single vein, found in some plant species, notably the lycophytes.

Megaphylls

Large leaves with a complex vein structure found in most vascular plants, as opposed to the simpler microphylls.

Vascular Strand

Tissue in plants that contains xylem and phloem, responsible for the transportation of water, nutrients, and sugars.