The Chuba Corporation Uses a Standard Cost System in Which

question 164

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 denominator activity level in direct labor-hours used by Chuba in setting the predetermined overhead rate was:

• A) 7,600 hours
• B) 7,800 hours
• C) 8,000 hours
• D) 7,200 hours

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Definitions:

Electronic Records

Digital versions of patients' medical histories, including diagnoses, treatments, and outcomes, kept by healthcare providers.

Electronic Transmission

The process of sending data or information over electronic networks, such as the internet or telecommunication lines.

Configured

Set up or arranged in a way that enables a system or device to function in a specific manner.

Insurance Verification

The process of confirming a patient’s insurance coverage and benefits to ensure that the costs of treatments are covered.