Refer to Figure 21

question 126

Multiple Choice

Refer to Figure 21.5.Economies of scale occur in the following range of factory sizes

• A)#1 to #2.
• B)#1 to #3.
• C)#3 only.
• D)#1 to #5.

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Definitions:

Variable Overhead Efficiency Variance

The difference between the actual variable overheads incurred and the standard cost of those overheads for the actual production level.

Electrical Motor

A device that converts electrical energy into mechanical energy, used in a multitude of applications from household appliances to industrial machinery.

Standard Labor-Hours

The predetermined amount of labor time estimated for the completion of a task or production of goods under normal conditions.

Machine-Hours

The total hours that machines are in operation during the production process, used as a basis for allocating manufacturing overhead.