Refer to the Information Provided in Figure 8

question 137

Multiple Choice

Refer to the information provided in Figure 8.11 below to answer the questions that follow. Figure 8.11
-Refer to Figure 8.11. The value of the multiplier is

• A) 2.
• B) 2.5.
• C) 3.
• D) 4.

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Definitions:

Variable Manufacturing Overhead

Costs of manufacturing that vary with the level of production output, such as utilities and some wages.

Materials Price Variance

The variance between the real expense of materials and their anticipated (or standard) cost.

Direct Labor-hours

The total hours worked by employees directly involved in the production process, used as a basis for allocating labor costs to products or job orders.

Variable Overhead Efficiency Variance

The difference between the expected (standard) and actual variable overhead costs based on the actual level of an activity.