A Manufacturing Company Has a Standard Costing System Based on Direct

question 16

True/False

A manufacturing company has a standard costing system based on direct labour-hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: $\begin{array}{lrr} \text { Denominator level of activity } &3,700&\text { DLHs }\\ \text { Overhead costs at the denominator activity level: } &\\ \text { Variable overhead cost } &£ 28,490\\ \text { Fixed owerhead cost } &£ 47,545\\ \text { The following data pertain to operations for the most recent period:} &\\ \text { Actual hours } &3,900&\text { DLHs }\\ \text { Standard hours 3,900allowed for the actual output } &3,850&\text { DLHs }\\ \text { Actual total variable overhead cost } &£ 29,445\\ \text {Actual total fixed overhead cost } &£47,995 \\\end{array}$


-The overhead spending variance contains price but not quantity elements

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Definitions:

Descriptive Statistics

Mathematical procedures that allow a researcher to characterize a data pattern; these procedures include measures of central tendency and of variability.

Demand Characteristics

Cues in an experimental environment that suggest to participants what behavior is expected or desired by the researcher.

Obviously Correct

A term indicating that something is clearly right or true, leaving no room for doubt or debate.

Frequency Distributions

A statistical representation, often visual, that displays the number of occurrences of each distinct value of a variable.