Clayton Dies Without a Will

question 37

Multiple Choice

Clayton dies without a will. The distribution of Clayton's property, including his farm near Lincoln, Nebraska, is prescribed by

• A) a court-appointed executor.
• B) federal probate statutes.
• C) state intestacy laws.
• D) the degree of consanguinity between Clayton and his next of kin.

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Definitions:

Variable Overhead Efficiency Variance

A measure in managerial accounting that evaluates the efficiency of variable overhead resource utilization by comparing the actual hours worked to the standard hours allowed for the actual production achieved.

Standard Costing

An accounting method that assigns predetermined costs to cost units, used to control costs and measure performance.

Labour Efficiency Variance

The difference between the actual labor hours used and the standard labor hours expected for the level of production achieved.

Variable Overhead

Indirect manufacturing costs that vary with the level of production output, such as utilities and maintenance expenses.