Brummer Corporation Makes a Product Whose Variable Overhead Standards Are

question 12

Multiple Choice

Brummer Corporation makes a product whose variable overhead standards are based on direct labor-hours. The quantity standard is 0.1 hours per unit. The variable overhead rate standard is $8.00 per hour. In January the company produced 8,700 units using 910 direct labor-hours. The actual variable overhead rate was $7.90 per hour.The variable overhead efficiency variance for January is:

• A) $320 Favorable
• B) $316 Unfavorable
• C) $320 Unfavorable
• D) $316 Favorable

Identify the circumstances under which a firm will shut down in the short run.

Distinguish between variable and fixed costs.

Calculate total revenue, total cost, and profit for a firm in a perfectly competitive market.

Recognize the significance of Average Total Cost (ATC), Average Variable Cost (AVC), and Marginal Cost (MC) curves for decision making in the short run.

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Definitions:

Standpipe

A vertical pipe designed to provide a point of access to a water supply, often used by firefighters for hose connections.

Zerk Fittings

Grease fittings that allow for the easy application of lubricant to mechanical systems with a grease gun.

Trunnions

The cylindrical protrusions used as a pivot or mounting point, typically on cannons or similar devices, but also in various machinery.

Driveshaft Diameter

the exterior thickness of the driveshaft, which can influence the torque capacity and the overall performance of a vehicle's drivetrain system.