The Claus Corporation Makes and Sells a Single Product and Uses

question 92

Multiple Choice

The Claus Corporation makes and sells a single product and uses standard costing. During January, the company actually used 8,700 direct labor-hours (DLHs) and produced 3,000 units of product. The standard cost card for one unit of product includes the following: Variable factory overhead: 3.0 DLHs @ $4.00 per DLH.
Fixed factory overhead: 3.0 DLHs @ $3.50 per DLH.
For January, the company incurred $22,000 of actual fixed manufacturing overhead costs and recorded a $875 favorable volume variance.
The denominator level of activity in direct labor-hours (DLHs) used by Claus in setting the predetermined overhead rate for January is:

• A)9,500 DLHs
• B)9,250 DLHs
• C)8,750 DLHs
• D)10,500 DLHs

Analyze brake system problems and identify causes.

Recognize and explain the procedures for replacing and servicing brake system components.

Understand the principles and importance of bleeding in brake systems.

Distinguish between internal and external leaks in master cylinders.

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Definitions:

Pure Monopoly

A market structure where a single firm controls the entire supply of a product or service, with no close substitutes available, allowing it to influence price significantly.

Economies of Scale

Refers to the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale.

Profit-Maximizing

A strategy or process where a firm determines the price, output level, or operational efficiency that will yield the highest possible profit.

Nondiscriminating Monopolist

A monopolist who charges the same price to all consumers for its products, regardless of differences in demand or willingness to pay.