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

question 93

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 volume variance for the period was:

• A)$750 Unfavorable
• B)$2, 500 Unfavorable
• C)$1, 500 Unfavorable
• D)$1, 000 Unfavorable

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Definitions:

CNS

The central nervous system, comprising the brain and spinal cord, responsible for processing and coordinating sensory information and responses.

Receptor System

A collection of receptors that work together to receive and transduce signals in a cellular or biological system.

Drug Manipulations

The alteration of pharmacological responses, often in research or therapeutic settings, to understand the effects of substances on biological systems.

Neurotrophic Factor

Chemical compound that supports growth and differentiation in developing neurons and may act to keep certain neurons alive in adulthood.