Felter Company Uses a Standard Costing System Based on Direct

question 27

Multiple Choice

Felter Company uses a standard costing system based on direct labour hours. Last month, Felter Company used more direct labour hours than planned, while the production level was consistent with expectations. This is likely to result in

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

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Definitions:

Probability Density Function

A mathematical expression that defines the probability of a continuous random variable assuming a specific value.

Probability Density Function

A function that describes the likelihood of a continuous random variable to take on a particular value.

Inclusive

An approach or policy that ensures all individuals have equal access, opportunities, and rights without discrimination.

Continuous Distribution

A statistical function that describes the probabilities of the possible values of a continuous random variable.