Diehl Corporation Uses a Standard Cost System in Which It

question 169

Multiple Choice

Diehl Corporation uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours.The company's total applied factory overhead was $315,000 last year when the company used 32,000 direct labor-hours as the denominator activity.If the variable factory overhead rate was $8 per direct labor-hour,and if 30,000 standard direct labor-hours were allowed for the output of the year,then the total budgeted fixed factory overhead for the year must have been:

• A) $60,000
• B) $80,000
• C) $90,000
• D) $100,000

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Definitions:

Instrumental Conditioning

A learning process through which the strength of a behavior is modified by reinforcement or punishment.

Self-Efficacy

An individual's belief in their capacity to execute behaviors necessary to produce specific performance attainments.

Age-Grading

The process of categorizing individuals or allocating roles based on their age.

Allowance

A fixed amount of money given regularly, typically for a specific purpose or to a dependent for their expenses.