Standard Corporation Has Developed Standard Manufacturing Overhead Costs Based on a Capacity

question 74

Multiple Choice

Standard Corporation has developed standard manufacturing overhead costs based on a capacity of 180,000 direct labor-hours (DLHs) as follows: Standard overhead costs per unit:
Variable portion: 2 DLHs × $3 per DLH = $6
Fixed portion: 2 DLHs × $5 per DLH = $10
The following data pertain to operations in April:
The variable overhead rate variance for April was:

• A) $15,000 Unfavorable
• B) $23,000 Unfavorable
• C) $38,000 Favorable
• D) $38,000 Unfavorable

---

Definitions:

Group Polarization

The tendency for a group to make decisions that are more extreme than the initial inclination of its members, often observed following group discussions.

Reinforcement

In behavioral psychology, a process by which a behavior is strengthened or made more likely to occur again by rewards or consequences.

Groupthink

A mental effect that happens among a group when their need for agreement or uniformity leads to choices that are illogical or ineffective.

Group Polarization

A group's propensity to make choices that are further to the extreme compared to the initial leanings of the individuals in the group.