Cavalaris Products uses a standard cost system. Variable overhead costs are allocated based on direct labor hours. In the first quarter, Cavalaris had an unfavorable cost 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.
B) The actual variable overhead costs were higher than the budgeted costs.
You might also like to view...
Generally, brain and nerve cells are not able to regenerate after injury because they have left the cell cycle and are unable to return.
Answer the following statement true (T) or false (F)
A good way to recruit board members is to
a. ask present board members to suggest people like themselves b. contact newcomers to the community c. ask the CEO to make recommendations d. Write a letter to the largest employer in the area and ask for a volunteer e. advertise in a local publication
A consumer's ability to identify the brand under a variety of circumstances is referred to as brand association.
Answer the following statement true (T) or false (F)
Cross-sourcing describes the practice of having two suppliers provide every component
Indicate whether the statement is true or false