Derf Corporation Uses a Standard Cost System in Which It

question 3

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 fixed manufacturing overhead budget variance for the period was:

• A)$6,300 Unfavorable
• B)$2,500 Unfavorable
• C)$1,500 Unfavorable
• D)$1,000 Unfavorable

---

Definitions:

Prefer to Work Alone

A personal or situational preference for completing tasks or projects independently, without collaboration.

Plan For Success

A comprehensive strategy or approach intended to achieve specific goals or outcomes, ensuring positive results.

Motivation Factors

The various internal and external factors that stimulate the desire and energy in people to be continually interested and committed to a job, role, or subject.

Hygiene Factors

Elements related to the job environment that do not increase job satisfaction but, if absent, can lead to dissatisfaction.