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.

---

Definitions:

British Soldiers

Members of the military forces of the United Kingdom, known for their roles in various historical conflicts and colonizing efforts around the globe.

Provocation

An action or behavior that incites or stimulates a reaction, often used in a context where the response may be aggressive or contentious.

Massachusetts Assembly

The colonial legislature of Massachusetts, involved in governance and decisions affecting the colony.

Townshend Acts

A series of British Acts of Parliament passed during 1767 and 1768 that placed duties on common products imported to the American colonies, such as paper, tea, glass, and lead, leading to widespread opposition.