If Variable Manufacturing Overhead Is Applied on the Basis of Direct

question 54

Multiple Choice

If variable manufacturing overhead is applied on the basis of direct labour-hours and the variable overhead spending variance is favourable, then the

• A)actual variable manufacturing overhead rate exceeded the standard rate.
• B)standard variable manufacturing overhead rate exceeded the actual rate.
• C)actual direct labour-hours exceeded the standard direct labour-hours allowed for the actual output.
• D)standard direct labour-hours allowed for the actual output exceeded the actual hours.

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Definitions:

Toxic Chemical

A substance that can cause harm or damage to living organisms and the environment upon exposure.

Bottled Water

Packaged water intended for drinking, sold in individual plastic or glass containers.

Stakeholder Responsibility

An organization's duty to act in the best interests of its stakeholders, including customers, employees, investors, and the environment.

Organization

A structured group of people who come together to achieve common goals, often characterized by a system of tasks, roles, and communications.