The Halcion Company Uses a Standard Cost System in Which

question 117

Essay

The Halcion Company uses a standard cost system in which manufacturing overhead costs are applied to units of the company's single product on the basis of standard direct labor-hours (DLHs).The standard cost card for the product follows:

$$\begin{array} { | l | r | } \hline { \text { Standard Cost Cardper unit of product } } \\\hline \text { Direct Materials, 4 yards at } \$ 3.60 \text { pery ard } & \$ 14 \\\hline \text { Direct Labor, 1.5 DLHs at } \$ 8 \text { per DLH } & 12 \\\hline \text { Variable Ovemead, 1.5 DLHs at } \$ 2 \text { per DLH } & 3 \\\hline \text { Fixed Overhead, 1.5 DLHs at } \$ 6 \text { per DLH } & 9 \\\hline \text { Standard cost per unit } & \$ 38 \\\hline\end{array}$$
The following data pertain to last year's activities:

Required:
a.Compute the direct materials price and quantity variances for the year.b.Compute the direct labor rate and efficiency variances for the year.c.Compute the variable overhead rate and efficiency variances for the year.d.Compute the fixed manufacturing overhead budget and volume variances for the year.

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Definitions:

Deception

The act of misleading or falsely convincing others that a particular reality exists, when it does not.

Ageist Attitudes

Prejudices or discrimination against individuals or groups based on their age, often resulting in stereotyping and limiting opportunities.

Informed Consent

A process ensuring participants are fully aware of the potential risks and implications involved in a study or procedure before agreeing to participate.

Voluntary Participation

The principle that individuals freely choose to participate in an activity, study, or research without coercion or undue influence.