(Appendix 10A) the Chuba Corporation Uses a Standard Cost System

question 1

Multiple Choice

(Appendix 10A) The Chuba Corporation uses a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours (DLHs) . During December, the company actually used 7,200 direct labor-hours and made 1,900 units of finished product. The standard cost card for one unit of product includes the following data concerning manufacturing overhead:
Variable overhead: 4 DLHs @ $5.25 per DLH
Fixed overhead: 4 DLHs @ $2.00 per DLH
For December, the company incurred $16,550 in fixed manufacturing overhead costs and recorded an $800 unfavorable volume variance.
-The budgeted fixed manufacturing overhead cost was:

• A) $15,200
• B) $16,000
• C) $16,550
• D) $13,700
• E) $14,400

---

Definitions:

Visionary Leadership

A leadership style that involves leaders who are able to inspire and motivate others toward achieving a long-term vision.

Vision

A forward-looking statement or image that defines what an organization or individual aims to achieve in the future.

Transformational Leadership

A leadership style that inspires and motivates followers to exceed their own interests for the sake of the group or organization by focusing on higher ideals and moral values.

Employee-Centredness

An approach in management that focuses on the needs, well-being, and involvement of employees in decision-making processes.