(1)Can you explain Question 1 above? My answer for question 2 above is D, but correct answer is C($3000 F ). Can you show the workings? (2)why calculation of variable overhead cost, direct labour cost and use the same number of standard hour? (3)why a department store is Revenue center? I think it should be profit center as it get cash from customers(revenue) and pay the rent for store(cost).

Q1. Which of the following situations cannot occur together during the same accounting period? A. Unfavorable labor rate variance and favorable labor efficiency variance. B. Unfavorable labor efficiency variance and favorable materials quantity variance. C. Favorable labor rate variance and unfavorable total labor variance. D. Favorable labor efficiency variance and favorable materials quantity variance. E. None of the above, as all of these situations are possible. Answer: 2. Lantern Corporation recently prepared a manufacturing cost budget for an output of 50,000 units, as follows: Direct materials $100,000 Variable overhead $ 75,000 Direct labor 50,000 Fixed overhead 100,000 Actual units produced amounted to 60,000. Actual costs incurred were: direct materials, $110,000; direct labor, $60,000; variable overhead, $100,000; and fixed overhead, $97,000. If Lantern evaluated performance by the use of a flexible budget, a performance report would reveal a total variance of: - A. $27,000 unfavorable. $42,000 unfavorable. $3,000 favorable. D. $23,000 favorable. none of the above amounts. Answer: CH