If P = 2 and Y = 1000,then Which of the Following

question 203

Multiple Choice

If P = 2 and Y = 1000,then which of the following pairs of values are possible?

• A)M = $500,V = 4.
• B)M = $250,V = 8.
• C)M = $1,000,V = 2.
• D)All of the above are correct.

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Definitions:

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (standard) variable overhead allocated based on activity levels.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected to produce a certain level of output, multiplied by the standard labor rate.

Labor Rate Variance

The difference between the actual cost of labor and the expected (or standard) cost, often used in manufacturing to measure efficiency and cost management.

Favorable

A term typically used in budgeting and accounting to describe variances or outcomes that are better than expected or budgeted figures.