Derf Corporation Uses a Standard Cost System in Which It

question 35

Multiple Choice

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 variable overhead rate variance for the period was:

• A)$5,300 Unfavorable
• B)$1,200 Unfavorable
• C)$6,300 Unfavorable
• D)$6,500 Unfavorable

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Definitions:

Nucleotide Sequences

The arrangement of nucleotides in a strand of DNA or RNA, determining genetic information and its expression.

Bacteria

Microscopic, single-celled organisms that inhabit almost all environments on Earth, including soil, water, and within other organisms.

Protista

A diverse kingdom of mostly unicellular organisms that are not plants, animals, or fungi, including algae, protozoa, and slime molds.

Genomes

The complete set of genes or genetic material present in a cell or organism, providing the biological blueprint for an organism’s structure and function.