Felter Company Uses a Standard Costing System Based on Direct

question 69

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:

Guarantees

Formal promises or assurances, typically in writing, that certain conditions will be fulfilled, especially relating to the quality or durability of a product.

Good

An item or product that is produced or manufactured to fulfill wants or needs.

Service

An intangible act or use benefit provided by one party to another that does not result in ownership of anything.

Position

The place a brand or product occupies in the consumers' minds relative to competitors, often based on attributes, benefits, perceptions, or reputation.