The Chuba Corporation Uses a Standard Cost System in Which

question 98

Multiple Choice

The Chuba Corporation uses a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours (DLHs) . During December, the company actually used 7,200 direct labor-hours and made 1,900 units of finished product. The standard cost card for one unit of product includes the following data concerning manufacturing overhead: Variable overhead: 4 DLHs @ $5.25 per DLH
Fixed overhead: 4 DLHs @ $2.00 per DLH
For December, the company incurred $16,550 in fixed manufacturing overhead costs and recorded an $800 unfavorable volume variance.
The budgeted fixed manufacturing overhead cost was:

• A) $15,200
• B) $16,000
• C) $16,550
• D) $13,700
• E) $14,400

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Definitions:

Bagels

A dense, doughnut-shaped bread roll, typically boiled before being baked, originating from the Jewish communities of Poland.

Unjust Enrichment

A legal principle stating one party should not be allowed to profit at another's expense without making restitution for the fair market value of any benefits received.

Legal Obligations

Duties enforced by law that a person or entity is required to fulfill.

Ratify

To officially approve or confirm, often used in the context of formalizing agreements or treaties.