What can create the variable overhead efficiency variance?

Select one:

a.

Efficient or inefficient usage of a specific component of variable overhead (e.g. electricity)

b.

Production of units for finished goods inventory versus production for sale

c.

Efficient or inefficient use of the cost driver (e.g. machine hours) for variable overhead

d.

A difference between the planned level of output and the actual level of output

The support department cost allocation method that recognises some of the reciprocal services between support departments is called the:

Select one:

a.

reciprocal method

b.

step-down method

c.

direct method

d.

dual cost allocation method

e.

direct method and step down method

Which of the following is correct?

Select one:

a.

Overtime premiums should be treated as a component of Direct labour

b.

overtime premium should be accounted for as a special type of loss.

c.

Idle time should be treated as a component of manufacturing overhead.

d.

Both "a" and "c" are correct

The Mixed-Up Floor Co. Ltd makes two products, carpet polish and floor deodoriser. Operating information from the previous year is as follows:

Carpet polish

Floor deodoriser

Sales price per unit

$7.00

$10.00

Variable cost per unit

$4.00

$8.00

Units produced and sold

5,000

4,000

Machine hours used

5,000

2,000

Assuming an unlimited amount of each product can be sold, how many units of each product should be produced and sold if machine hours are limited to 20,000?

Select one:

a.

10,000 units of car polish and 0 units of floor deoderiser

b.

5,000 units of car polish and 10,000 units of floor deoderiser

c.

8,000 units of car polish and 4,000 units of floor deoderiser

d.

0 units of car polish and 40,000 units of floor deoderiser

e.

0 units of car polish and 0 units of floor deoderiser

Clear my choice