Derf Corporation Uses a Standard Cost System in Which It

question 75

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 volume variance for the period was:

• A)$750 Unfavorable
• B)$2,500 Unfavorable
• C)$1,500 Unfavorable
• D)$1,000 Unfavorable

Distinguish between positive and normative economics and recognize examples of each.

Comprehend the principles of self-interest and altruism in economic behavior.

Identify the basic differences between macroeconomics and microeconomics.

Explain the economic reasoning behind incentives and how they influence human behavior.

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Definitions:

Self-Actualization Needs

The highest level in Maslow's hierarchy of needs, representing the pursuit of realizing one's full potential and seeking personal growth and peak experiences.

Competence Motivation

The theory that individuals are motivated to engage in behaviors that they perceive will enhance their competence or skills.

Self-Efficacy

A person's confidence in their ability to perform tasks that lead to certain desired outcomes.

Mastery

The process of acquiring comprehensive knowledge or skill in a subject or activity, often leading to improved performance and a sense of achievement.