The Hawkins Company Uses a Standard Costing System in Which

question 61

Multiple Choice

The Hawkins Company uses a standard costing system in which manufacturing overhead is applied on the basis of standard direct labor-hours (DLHs) . During February, the company actually used 9,200 direct labor-hours and made 2,900 units of finished product. The standard cost card for one unit of product includes the following:

Variable factory overhead: 3 DLHs $4.75 per DLH
Fixed factory overhead: 3 DLHs $3.00 per DLH

For February, the company incurred $28,450 in fixed manufacturing overhead costs and recorded a $900 favorable volume variance.

-The amount of fixed manufacturing overhead cost contained in the company's budget for February is:

• A)$27,000
• B)$27,550
• C)$25,200
• D)$29,350

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Definitions:

Summative Evaluation

An assessment conducted at the end of a program or course to determine its overall effectiveness or achievements.

Causal Evaluation

An assessment method that aims to determine the cause-and-effect relationship between two variables, often used to measure the impact of interventions or programs.

Organizations

Entities comprising multiple people working together towards a common goal, characterized by structured systems and processes.

Evaluations

The process of assessing or appraising something's value, quality, or performance, often for purposes of making informed decisions.