Felter Company Uses a Standard Costing System Based on Direct

question 29

Multiple Choice

Felter Company uses a standard costing system based on direct labour hours. Last month, Felter Company used more electricity and indirect materials than planned. This is likely to result in

• A) unfavourable variable overhead efficiency variance.
• B) unfavourable variable overhead efficiency variance and unfavourable variable overhead spending variance.
• C) unfavourable variable overhead efficiency variance and unfavourable fixed overhead variance.
• D) unfavourable variable overhead spending variance.

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Definitions:

Quantity Increments

Specific increases or steps in quantity, often used in the context of measurement, sales, or stock levels.

Pie Chart

A circular statistical graphic divided into slices to illustrate numerical proportion.

Total Sales

The sum of all sales revenue over a given period of time, reflecting the overall income generated from goods or services sold.

Salesperson

An individual who sells goods or services to customers, often working on commissions and responsible for negotiating sales and maintaining client relationships.