Which of the Following Could Be Indicated by the Fixed

question 54

Multiple Choice

Which of the following could be indicated by the fixed overhead production volume variance?

• A)Labor rates were lower than expected.
• B)A higher mix of unskilled workers were utilized.
• C)Raw materials were of lower quality than expected.
• D)The quantity of units produced was different than expected.
• E)None of the answer choices is correct.

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Definitions:

Direct Labor-Hour

A measurement of labor input that represents the amount of time spent by workers directly involved in the production process.

Overapplied Overhead

A situation where the overhead allocated to products exceeds the actual overhead costs incurred, leading to a need for adjustment in cost accounting.

Overapplied Manufacturing Overhead

This occurs when the allocated manufacturing overhead costs are more than the actual overhead costs incurred during a period.

Work in Process Inventory

Goods that are in the process of being manufactured but are not yet complete.