(Appendix 10A) Standard Corporation Has Developed Standard Manufacturing Overhead Costs

question 32

Multiple Choice

(Appendix 10A) Standard Corporation has developed standard manufacturing overhead costs based on a capacity of 180,000 direct labor-hours (DLHs) as follows:
Standard overhead costs per unit:
Variable portion: 2 DLHs × $3 per DLH = $6
Fixed portion: 2 DLHs × $5 per DLH = $10
The following data pertain to operations in April:

-The fixed manufacturing overhead volume variance for April was:

• A) $60,000 Unfavorable
• B) $60,000 Favorable
• C) $100,000 Favorable
• D) $100,000 Unfavorable

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Definitions:

Product Market

The marketplace where final goods or services are offered to consumers, businesses, and the government.

Consumer Expenditures

The total spending by consumers on goods and services for personal use.

Profit Income

The financial gain that results when the revenue from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.

Market System

In this economic framework, the determination of investment, production, and distribution is influenced by the market signals emanating from the interplay of supply and demand.