Franklin Glass Works Uses a Standard Cost System in Which

question 36

Multiple Choice

Franklin Glass Works uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of direct labour-hours. Each unit requires two standard hours of labour for completion. The denominator activity for the year was based on budgeted production of 200,000 units. Total overhead was budgeted at £900,000 for the year, and the fixed overhead rate was £3.00 per unit. The actual data pertaining to the manufacturing overhead for the year are presented below: $$\begin{array} { l l } \text { Actual production } & 198,000 \text { units } \\\text { Actual direct labour-hours } & 440,000 \text { direct labour-hours } \\\text { Actual variable overhead } & £ 352,000 \\\text { Actual fixed overhead } & £ 575,000\end{array}$$
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The fixed overhead applied to Franklin's production for the year is

• A)£484,200.
• B)£575,000.
• C)£594,000.
• D)£600,000.

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Definitions:

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A term by psychoanalyst Karen Horney, referring to feelings of helplessness and insecurity that adults experience because of childhood experiences.

Neurotic Needs

Excessive psychological needs that lead to unhealthy behaviors or patterns, often resulting from unresolved anxieties or conflicts.

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The principle that therapeutic interventions ought to aim at improving an individual's mental health and well-being.

Neurotic Needs

Refers to emotional needs that can lead to unhealthy or maladaptive behaviors when they become compulsive or excessively intense.