Point Company Uses the Standard Costing Method

question 42

Multiple Choice

Point Company uses the standard costing method. The company's main product is a fine-quality audio speaker that normally takes 0.25 hour to produce. Normal annual capacity is 3,000 direct labor hours, and budgeted fixed overhead costs for the year were $6,750. During the year, the company produced and sold 8,000 units. Actual fixed overhead costs were $4,800. Compute the fixed overhead budget variance.

• A) $300 (F)
• B) $300 (U)
• C) $1,950 (F)
• D) $1,950 (U)

Describe the impact of mass production on job characteristics and worker behavior.

Explain the significance of person-job fit and person-environment fit models in job design.

Comprehend the role of social information-processing and its premises in the job design process.

Understand the implications of ergonomics and the biological approach in designing jobs for health and efficiency.

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Definitions:

Economic Profit

The difference between total revenue and the total cost of inputs (including opportunity costs), reflecting the additional gain from business operations beyond breaking even.

Economic Loss

The decrease in financial value or resources due to an event, action, or inaction, encompassing factors such as direct, indirect, and opportunity costs.

Production Costs

Expenses directly related to the creation and manufacturing of a product, including raw materials, labor, and overhead.

Explicit Costs

These are direct, out-of-pocket payments for expenses incurred by a business, such as wages, rent, and materials.