Variable Manufacturing Overhead Is Applied to Products on the Basis

question 60

Multiple Choice

Variable manufacturing overhead is applied to products on the basis of standard direct labour-hours. If the direct labour efficiency variance is unfavourable, the variable overhead efficiency variable will be

• A)favourable.
• B)unfavourable.
• C)either favourable or unfavourable.
• D)zero.

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Definitions:

Work Centre

A specific location in a manufacturing facility where a set of production tasks or operations are carried out.

Processing

The series of actions or steps taken in order to achieve a particular end, especially in the context of data or material transformation.

Johnson's Rule

A scheduling rule that minimizes idle time and enhances job sequencing efficiency in a manufacturing process.

Alpha

In statistics, alpha refers to the significance level used to reject the null hypothesis, often set at 0.05 or 5% risk. In finance, it represents the excess return on an investment relative to the return of a benchmark index.