Ewing Corporation's Controller Has Developed the Cost and Usage Data

question 118

Multiple Choice

Ewing Corporation's controller has developed the cost and usage data listed below in preparation of standard unit cost information for the coming year. $\begin{array} { lr } \text { Direct materials quantity standard}& \text {3 pounds per product }\\ \text {Direct labor time standard }& \text {5 hours per product }\\ \text {Direct materials price standard }& \text { \( \$ 10 \) per pound}\\ \text {Direct labor rate standard }& \text { \( \$ 9 \) per hour}\\ \text { Standard variable overhead rate}& \text { \( \$ 5 \) per labor hour}\\ \text { Standard fixed overhead rate}& \text {\( \$ 10 \) per labor hour }\\\end{array}$
The standard unit cost for overhead is

• A) $15.
• B) $25.
• C) $50.
• D) $75.

Understand the concepts of total fixed cost (TFC), total variable cost (TVC), and total cost (TC).

Analyze the determination of marginal cost (MC), average variable cost (AVC), and average total cost (ATC).

Identify the shutdown point and its implications for firm decision-making.

Calculate operating profits and economic profits for a firm.

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Definitions:

Unstructured Interview

An interviewing technique without a set sequence of questions, allowing for a more flexible and spontaneous conversation to elicit more personal and detailed responses.

Leniency Error

A bias in performance appraisals where the appraiser tends to rate employees more favorably than their performance justifies.

Structured Interview

An interview process that asks the same job-relevant questions of all applicants, each of whom is rated on established scales.

Casual Conversation

Informal, unstructured dialogue often about everyday topics, where there is no specific purpose other than social interaction.