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Dalgleish Corporation Manufactures One Product

question 60

Multiple Choice

Dalgleish Corporation manufactures one product.It does not maintain any beginning or ending Work in Process inventories.The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.There is no variable manufacturing overhead.The standard cost card for the company's only product is as follows:
The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $358,750 and budgeted activity of 17,500 hours.During the year,32,900 units were started and completed.Actual fixed overhead costs for the year were $347,350.
Assume that all transactions are recorded on a worksheet as shown in the text.On the left-hand side of the equals sign in the worksheet are columns for Cash,Raw Materials,Work in Process,Finished Goods,and PP&E (net) .All of the variance columns are on the right-hand-side of the equals sign along with the column for Retained Earnings.
When the fixed manufacturing overhead cost is recorded,which of the following entries will be made?

Definitions:

Exponentially Distributed

Describes the time between events in a process in which events occur continuously and independently at a constant average rate.

Parameter λ

A symbol often used to denote a specific parameter in mathematical or statistical expressions, such as the rate parameter in an exponential distribution.

Variance

A measure of the dispersion or spread of a set of data points around their mean, indicating how much the data points differ from the mean.

Standard Normal Random Variable

A random variable with a mean of zero and a standard deviation of one, following the standard normal distribution, which is a specific instance of the normal distribution.