Everett, Inc

question 31

Multiple Choice

Everett, Inc. budgeted $1,488,000 for total overhead. The standard variable overhead rate was $2 per direct labour hour, or $6 per unit, based on an anticipated activity level of 600,000 direct labour hours. During the year 220,000 units were produced. Fixed overhead costs incurred were $300,000. The variable overhead budget variance was $19,800 unfavourable, and the actual variable overhead rate was $2.10 per direct labour hour.
The standard fixed overhead rate per direct labour hour was:

• A) $0.48
• B) $0.90
• C) $0.50
• D) $0.96

---

Definitions:

Sensory Input

Information gathered by the senses such as sight, sound, touch, taste, and smell, which gets processed by the brain to make sense of the world.

Moral Realism

The philosophical belief that there are objective moral values which are independent of human opinion or belief.

Authority

The power or right to give orders, make decisions, and enforce obedience.

Cognitive Abilities

The mental skills that involve the ability to reason, remember, understand, solve problems, and make decisions.