Peterson Inc

question 77

Multiple Choice

Peterson Inc. uses direct labor hours as the cost driver for variable overhead. Which of the following items does not need to be known, in order to calculate the variable overhead spending variance?

• A) Actual overhead costs
• B) Actual direct labor hours
• C) Standard variable overhead rate per direct labor hour
• D) Standard direct labor hours allowed

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Definitions:

Investment Turnover

A measure of a company's efficiency in using its assets to generate sales or revenue; the ratio of the cost of goods sold to the average inventory.

Managerial Efficiency

The effectiveness with which managers utilize resources and make decisions to achieve the organization's goals.

Investments In Assets

Financial activities involving the purchase of assets with the expectation that they will generate income or appreciate in the future.

Invested Assets

Assets that are allocated or deployed in various types of investments, including stocks, bonds, real estate, or other financial instruments, to generate returns.