The Dodge Company Makes and Sells a Single Product and Uses

question 41

Multiple Choice

The Dodge Company makes and sells a single product and uses a standard cost system in which manufacturing overhead costs are applied to units of product on the basis of standard direct labor-hours. The standard cost card shows that 5 direct labor-hours are required per unit of product. The Dodge Company had the following budgeted and actual data for the year:

The budgeted direct labor-hours is used as the denominator activity for the month.
-The variable overhead rate variance was:

• A)$4,500 U
• B)$10,500 U
• C)$13,500 U
• D)$16,500 U

---

Definitions:

Net Capital

The total value of a company’s or individual's assets minus liabilities, representing the owner's equity or net worth.

Desirable Investment

An investment opportunity deemed attractive due to factors like potential for high returns, stability, or alignment with the investor's financial goals and risk tolerance.

Exchange Rate

How much one currency is worth in terms of a different currency.

Net Capital

The difference between a company's total assets minus its total liabilities, indicating its overall financial health and stability.