Assume the Number of Machine Hours Is the Cost Driver

question 63

Multiple Choice

Assume the number of machine hours is the cost driver for variable overhead. The difference between the actual variable overhead and the flexible budget for variable overhead (based on standard machine hours allowed for actual output) is the

• A) volume variance.
• B) net overhead variance.
• C) efficiency variance.
• D) sum of variable spending and efficiency variances.

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Definitions:

Monocots

A group of flowering plants (monocotyledons) with a single seed leaf, including grasses, lilies, and orchids, characterized by various structural features such as parallel leaf venation.

Rhizobia

Soil bacteria that fix nitrogen after becoming established inside root nodules of legumes.

Infection Threads

Filamentous structures formed by certain bacteria during the infection process of plant roots, facilitating microbial entry.

Legume

(1) A simple, dry fruit that develops from a single carpel and splits open at maturity along two sutures to release seeds. (2) Any member of the pea family (e.g., pea, bean, peanut, alfalfa).