The company applies variable manufacturing overhead to products on the basis of direct labour hours. What is the variable overhead efficiency variance?

Under variable costing, all fixed manufacturing costs are treated as a a. product cost included in the cost of goods manufactured. b. product cost included in the cost of ending inventory. c. period expense deducted from manufacturing margin. d. period expense deducted from contribution margin.

What is a key difference between variable costing and absorption costing?   a. The usage of homogenous cost pools.   b. The classification of fixed factory overhead.   c. classification of direct materials and labor.   d. The choice of allocation base.

1. What are the three primary reasons of using a standard cost system? In a business that routinely manufactures the same products or performs the same services, why are standards helpful? 2. What are ideal standards? What are currently attainable standards? Explain which standard is usually adopted and why. 3. Some people suggest that the direct labor rate variance is never controllable. Do you agree or disagree? Give reasons to support your answer.

In Traditional product costing systems, the measure of product activity is usually some volume based cost driver, like direct labor hours. True or False?

Which of the following is a correct equation to calculate the fixed overhead production-volume variance?   a. budgeted fixed overhead costs − fixed overhead costs allocated for actual output   b. static budget amount − flexible budget amount   c. actual costs incurred − fixed overhead costs allocated for actual output   d. flexible budget amount − actual costs incurred

Which of the following statements Is true? Multiple Choice The material quantity variance is recorded when overhead is applied to production. The material price and the material quantity variances are recorded at the same time., The materials quantity variance is recorded when materials are used in production. The materials quantity variance is recorded when materials are purchased.

Which of the following is not a method of cost absorption? (a) Percentage of direct material cost (b) Machine hour rate (c) Labour hour rate (d) Repeated distribution method

Question: In cost accounting, what is the primary purpose of calculating the predetermined overhead rate? A) To allocate indirect costs to products based on a predetermined formula.B) To determine the actual overhead costs incurred during a specific production period.C) To calculate variable costs associated with each unit of production.D) To assess fixed costs that remain constant regardless of production levels.

What are the advantages and disadvantages of Standard costing system when the labor rate us fixed?