Cheapo Sales Company uses a standard cost system
Overhead costs are allocated based on direct labor hours. In the first quarter, Cheapo Sales had a favorable efficiency variance for variable overhead costs. Which of the following scenarios is a reasonable explanation for this variance?
A) The actual number of direct labor hours was lower than the budgeted hours.
B) The actual variable overhead costs were higher than the budgeted costs.
C) The actual variable overhead costs were lower than the budgeted costs.
D) The actual number of direct labor hours was higher than the budgeted hours.
A
You might also like to view...
A job description defines and discusses all the essential knowledge, skills, and abilities that are needed to fill a position.
Answer the following statement true (T) or false (F)
Which of the following items would not normally appear on bank reconciliations?
a. Balance per bank. b. Outstanding deposits list. c. Balance per books. d. Outstanding checks list.
"Valuing diversity" essentially means accepting accents or language, dress or food of employees whose race, ethnicity, or gender differs from your own.
Answer the following statement true (T) or false (F)
In a lease transaction, title to the leased goods remains with either the lessor or a third party
Indicate whether the statement is true or false