Derf Corporation Uses a Standard Cost System in Which It

question 35

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 rate variance for the period was:

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

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Definitions:

Cerebral Medulla

Often referring to the inner region of an organ, it can be a misnomer for brain regions such as the cerebral cortex or medulla oblongata, depending on context.

Nerve Tracts

Bundles of nerve fibers that connect different regions of the brain and spinal cord, enabling communication within the nervous system.

White Matter

Composed of bundles of myelinated nerve fibers (axons) connecting various grey matter areas of the brain to each other.

Somatic Sensory

Pertains to the sensory system that conveys information from the skin and muscles, including touch, pain, temperature, and proprioception.