The Claus Company Makes and Sells a Single Product and Uses

question 212

Multiple Choice

The Claus Company makes and sells a single product and uses standard costing. During January, the company actually used 8,700 direct labour hours (DLHs) and produced 3,000 units of product. The standard cost card for one unit of product includes the following:

Variable Factory Overhead: 3.0 DLHs @ $4.00 per DLH.
Fixed Factory Overhead: 3.0 DLHs. @ $3.50 per DLH.

For January, the company incurred $22,000 of actual fixed overhead costs and recorded an $875 favourable volume variance.




-What was the denominator level of activity in direct labour hours (DLHs) used by Claus in setting the predetermined overhead rate for January?

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Definitions:

Walking Skills

The abilities or techniques associated with locomotion on foot, which can vary widely among different organisms and developmental stages.

Synaptic Connections

The points of contact where signals are transmitted between neurons or between neurons and other cell types.

Synaptic Plasticity

The ability of synapses, the connections between neurons, to strengthen or weaken over time, in response to increases or decreases in their activity.

Choroid Plexus

A network of cells in the ventricles of the brain responsible for producing cerebrospinal fluid.