(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

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Definitions:

Item List

A register or inventory of items that are available for use or sale, often found in accounting or inventory management software.

Home Page

The main screen or dashboard of software or a website, providing access to various sections and tools.

Enter Bills Window

In accounting software, a specific feature or interface where bills or invoices received from vendors are entered.

Journal Entry

A record of a financial transaction within the double-entry bookkeeping system, containing debits and credits.