Crawford Company's Standard Fixed Overhead Cost Is $6 Per Direct

question 57

Multiple Choice

Crawford Company's standard fixed overhead cost is $6 per direct labor hour based on budgeted fixed costs of $600,000.The standard allows 1 direct labor hour per unit.During 2011, Crawford produced 110,000 units of product, incurred $630,000 of fixed overhead costs, and recorded 212,000 actual hours of direct labor.
- What is Crawford's fixed overhead volume variance for 2006?

• A) $60,000 (F)
• B) $24,000 (F)
• C) $36,000 (U)
• D) $60,000 (U)

Interpret real-world option pricing data from financial publications like the Wall Street Journal.

Understand the concepts and applications of various marketing research methods.

Identify and describe different types of data in marketing research.

Understand the role and execution of focus groups in gathering qualitative data.

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Definitions:

Direct Method

A costing approach that allocates service department costs directly to producing departments without considering service department interactions.

Support Department

A division within an organization that provides essential services to other departments but does not directly contribute to profit, such as IT or HR.

Cost Allocation

The process of distributing or assigning indirect costs to different departments, products, or projects.

Reciprocal Method

An approach in cost accounting used to allocate service department costs to production departments, considering the mutual services exchanged between service departments.