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

Demonstrate critical thinking attitudes in nursing.

Explain the role of concept maps in enhancing critical thinking in nursing.

Understand how intuitive thinking is used in nursing practice.

Recognize the importance of contextual awareness in patient care.

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Definitions:

Marginal Cost

The increase in total cost that arises from an extra unit of production.

Labor-supply Curve

A graphical representation showing the relationship between the quantity of labor supplied and the wage rate.

Leisure

Time spent away from work and other duties, free for relaxation or activities of personal choice.

Marginal Product

Marginal product is the additional output that is generated by using one more unit of a particular input, holding all other inputs constant.