Assuming That the Standard Fixed Overhead Rate Is Based on Full

question 138

Multiple Choice

Assuming that the standard fixed overhead rate is based on full capacity, the cost of available but unused productive capacity is indicated by the:

• A) factory overhead cost volume variance
• B) direct labor cost time variance
• C) direct labor cost rate variance
• D) factory overhead cost controllable variance

---

Definitions:

Standard Deviation

A measure of the dispersion or spread of a set of numbers, indicating how much the values in the set deviate from the mean.

Test Statistic

A calculated value from sample data used to test a hypothesis within the framework of a statistical test.

Average Delivery Time

The mean time taken for goods to be delivered from the point of dispatch to the recipient.

Test Statistic

A quantity determined from the data of a sample within a hypothesis testing framework, utilized to assess the rejection of the null hypothesis.