Henley Company Uses a Standard Cost System That Applies Manufacturing

question 125

Multiple Choice

Henley Company uses a standard cost system that applies manufacturing overhead to units of product on the basis of direct labour hours.For the month of January,the fixed manufacturing overhead volume variance was $2,220 favourable.The company uses a fixed manufacturing overhead rate of $1.85 per direct labour hour.What were the standard direct labour hours allowed for the month's output in January?

• A) They exceeded the denominator hours by 1,000.
• B) They fell short of the denominator hours by 1,000.
• C) They exceeded the denominator hours by 1,200.
• D) They fell short of the denominator hours by 1,200.

---

Definitions:

Participate

Involves taking an active role or part in an event, activity, or discussion, often contributing through interaction or engagement.

PTO

Stands for Parent-Teacher Organization, a formal organization composed of parents, teachers, and staff that is intended to facilitate parental participation in a school.

Educators

Professionals who impart knowledge and skills to students, facilitating learning and intellectual development.

Mandated Standards

Officially required or prescribed benchmarks or criteria that must be met by organizations, services, products, or individuals.