(Appendix 11A)Derf Corporation Uses a Standard Cost System in Which

question 89

Multiple Choice

(Appendix 11A) Derf Corporation uses a standard cost system in which it applies manufacturing overhead on the basis of standard direct labor-hours.Two direct labor-hours are required for each unit produced.The denominator activity was set at 9, 000 units.Manufacturing overhead was budgeted at $135, 000 for the period;20 percent of this cost was fixed.The 17, 200 hours worked during the period resulted in production of 8, 500 units.Variable manufacturing overhead cost incurred was $108, 500 and fixed manufacturing overhead cost was $28, 000. The fixed manufacturing overhead budget variance for the period was:

• A)$6, 300 Unfavorable
• B)$2, 500 Unfavorable
• C)$1, 500 Unfavorable
• D)$1, 000 Unfavorable

Appreciate the importance of comparing financial terms and recognizing consumer rights in credit and loan situations.

Understand how to calculate debt-to-equity ratio and its implications.

Identify the characteristics and understand the use of stored-value cards.

Recognize appropriate and inappropriate uses of home equity loans.

---

Definitions:

Economic Growth

An increase in the production of goods and services in an economy over a period of time.

Underlying Attitude

The fundamental or basic views and feelings that indirectly shape an individual's reactions and behaviors.

Priming

A psychological effect in which exposure to a stimulus influences a response to a later stimulus.

Crucial Item

An element deemed extremely important or essential in a particular context or situation.