The Dodge Company Makes and Sells a Single Product and Uses

question 32

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 fixed manufacturing overhead volume variance as:

• A)$7,500 F
• B)$1,500 F
• C)$3,750 U
• D)$7,500 U

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Definitions:

Societal Costs

The total expenses borne by society as a whole, including both direct and indirect costs, resulting from a particular event or action.

Withhold Treatment

The decision not to initiate medical treatment or to stop medical treatment that is currently being provided.

Ashley Treatment

A set of medical procedures aimed at halting growth and sexual development in severely disabled children for managing their care more easily.

Menstrual Cramps

Painful sensations felt in the lower abdomen that can occur before or during a woman's menstrual period.