Derf Corporation Uses a Standard Cost System in Which It

question 83

Multiple Choice

Derf Corporation uses a standard cost system in which it applies manufacturing overhead on the basis of standard direct labor-hours. Two direct labor-hours are required for each unit produced. The denominator activity was set at 9,000 units. Manufacturing overhead was budgeted at $135,000 for the period; 20 percent of this cost was fixed. The 17,200 hours worked during the period resulted in production of 8,500 units. Variable manufacturing overhead cost incurred was $108,500 and fixed manufacturing overhead cost was $28,000. The variable overhead efficiency variance for the period was:

• A)$5,300 Unfavorable
• B)$1,200 Unfavorable
• C)$1,500 Unfavorable
• D)$6,500 Unfavorable

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Definitions:

Openness

A personality trait that features qualities like intellectual curiosity, creativity, preference for novelty, and a wide range of interests.

Stability

In psychological terms, stability refers to the consistency of individual differences over time in aspects of personality, intelligence, or behavior.

Broader Personality Factor

A term possibly referring to overarching dimensions of personality, such as those described in trait theory, which include broad traits like extraversion or agreeableness.

Psychologically Well Adjusted

A state in which an individual demonstrates emotional stability, resilience, and a positive sense of well-being.