The Standard Costs and Actual Costs for Direct Materials,direct Labor,and

question 71

Multiple Choice

The standard costs and actual costs for direct materials,direct labor,and factory overhead for the manufacture of 2,500 units of product are as follows:

Variable cost @ $2 per hour
Total variable cost,$18,000
Fixed cost @ $0.80 per hour
Total fixed cost,$8,000
The amount of the fixed factory overhead volume variance is

• A)$2,000 favorable.
• B)$2,500 favorable.
• C)$2,500 unfavorable.
• D)$2,000 unfavorable.

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Definitions:

Asserted

Stated or expressed positively and often forcefully or aggressively.

Assert Proposition

To claim that a certain proposition, a statement that can be true or false, is true.

Hypothetical-deductive Reasoning

A cognitive process, identified by Piaget, involving the ability to formulate hypotheses and systematically deduce the most logical consequences to solve a problem.

Formal Operational Thought

A stage in cognitive development, according to Piaget, where individuals develop the ability to think abstractly, logically, and systematically, usually beginning in adolescence.