The Claus Corporation Makes and Sells a Single Product and Uses

question 66

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 fixed manufacturing overhead cost used to compute the predetermined overhead rate was:

• A)$31,500
• B)$30,625
• C)$32,375
• D)$33,250

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Definitions:

Kinesics

The study of how body movements and gestures serve as a form of non-verbal communication.

Interpretation

The act of explaining or deriving the meaning of something, such as a text, situation, or set of data.

Touch

Physical contact between individuals that can communicate various emotions or serve different social functions.

Intimacy

A close, familiar, and usually affectionate or loving personal relationship with another person or group.