Oslund Company Manufactures Only One Product and Uses a Standard

question 48

Multiple Choice

Oslund Company manufactures only one product and uses a standard cost system.During the past month,the following variances were observed:
Oslund applies variable overhead using a standard rate of $20 per standard DLH allowed.During the month,Oslund used 20% more DLHs than the total standard hours for the units manufactured.What were the total actual direct hours worked?

• A)1,200.
• B)3,000.
• C)4,800.
• D)6,000.
• E)7,200.

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Definitions:

IRR Method

The Internal Rate of Return method, a capital budgeting technique used to evaluate the profitability of an investment or project.

Hurdle Rate

The minimum acceptable rate of return on an investment, used as a benchmark to determine the viability of the project or investment.

Capital-Budgeting

The process by which investors or managers evaluate and select long-term investments based on their potential to generate net revenues.

Risk-Free Rate

The theoretical return on an investment with no risk of financial loss, typically represented by the yield on government bonds.