Marshall Company Uses a Standard Cost System

question 208

Multiple Choice

Marshall Company uses a standard cost system.Variable overhead costs are allocated based on direct labor hours.In the first quarter,Marshall had a favorable 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:

Moral Domains

Specific areas of moral judgment that distinguish between types of ethical or moral behavior.

Shweder

Richard A. Shweder, an anthropologist known for his work in cultural psychology and ethnopsychology, particularly regarding moral reasoning.

Competence Morals

Moral principles that emphasize the ethically correct way of acting in situations requiring skill, knowledge, and expertise.

Beliefs

Convictions or acceptance that certain things are true or real, often without empirical evidence.