The Following Data Have Been Provided by Gerlach Corporation, a Company

question 115

Multiple Choice

The following data have been provided by Gerlach Corporation, a company that produces forklift trucks: Supplies cost is an element of variable manufacturing overhead. The variable overhead efficiency variance for supplies cost is:

• A)$966 U
• B)$5,897 U
• C)$5,897 F
• D)$966 F

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Definitions:

Regression Formula

The Regression Formula is used in statistics to determine the relationship between independent variables and a dependent variable, predicting the latter based on the formers' values.

Slope

In mathematics and economics, a measure of steepness or incline, often representing the rate of change of a function on a graph.

Cost Driver

A factor that causes a change in the cost of an activity or a product, such as production volume or labor hours.

Activity-based Costing

A methodology that assigns production costs to products based on the activities required to produce them, aiming for more accurate cost allocation.