Ferro Enterprises Uses a Standard Cost System in Which It

question 118

Multiple Choice

Ferro Enterprises uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours.During the month of September, the company applied $52,000 in fixed manufacturing overhead cost to units of product.At the end of the month, manufacturing overhead was overapplied by $3,000.If there was no volume variance in September, then the budgeted fixed manufacturing overhead cost for the month was:

• A)$49,000
• B)$52,000
• C)$55,000
• D)$58,000

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Definitions:

Education

The method of being taught or teaching methodically, particularly in an educational institution like a school or university.

Crime Rates

Crime rates represent the number of crimes reported in a given area or population over a specific time period, often used as an indicator of social stability and safety.

External Cost

A cost of production or consumption that is not borne by the producer or consumer, but by society in general, such as pollution.

Plastics

Synthetic materials made from polymers that can be molded into different shapes and are used widely in goods and packaging.