Rameriz Company Erred in Selecting a Denominator Activity and Chose

question 55

Multiple Choice

Rameriz Company erred in selecting a denominator activity and chose a much higher level than was realistic. This error would most likely result in a large

• A)favourable variable overhead efficiency variance.
• B)favourable fixed overhead budget variance.
• C)unfavourable overhead volume variance.
• D)unfavourable fixed overhead budget variance.

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Definitions:

Koffka

Kurt Koffka, a German psychologist, was a co-founder of Gestalt psychology, which focuses on holistic perception and problem-solving.

Humanistic Theory

A psychological perspective that emphasizes the study of the whole person, looking at human behavior not only through the eyes of the observer but through the eyes of the person doing the behaving.

Existential

Pertaining to existentialism, a philosophy that emphasizes individual freedom, choice, and existence.

Cognitive

Relating to mental processes such as awareness, perception, reasoning, and judgement.