(Appendix 11A)The Claus Corporation Makes and Sells a Single Product

question 49

Multiple Choice

(Appendix 11A) The Claus Corporation makes and sells a single product and uses standard costing.During January, the company actually used 8, 700 direct labor-hours (DLHs) and produced 3, 000 units of product.The standard cost card for one unit of product includes the following: Variable factory overhead: 3.0 DLHs @ $4.00 per DLH.
Fixed factory overhead: 3.0 DLHs @ $3.50 per DLH.
For January, the company incurred $22, 000 of actual fixed manufacturing overhead costs and recorded a $875 favorable volume variance.
The fixed manufacturing overhead cost used to compute the predetermined overhead rate was:

• A)$31, 500
• B)$30, 625
• C)$32, 375
• D)$33, 250

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Definitions:

Market

An economic system or environment where buyers and sellers interact to exchange goods and services for money or barter.

Merit Raise

A salary increase awarded to employees based on their job performance.

High Performers

Refers to individuals or groups who consistently achieve outstanding results and surpass standard expectations in their work or responsibilities.

Creativity

The ability to generate new and original ideas, solutions, or products, often seen as essential for innovation and problem-solving.