Derf Corporation Uses a Standard Cost System in Which It

question 75

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 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:

Longitudinal

Involving repeated observations or measurements of the same entities over a period of time, allowing for the study of changes or developments.

Time-Lag

The delay or period of time between two related events or processes.

Ethnic Minority Research

Studies focusing on the social, cultural, and psychological aspects of ethnic groups that are smaller in number within a larger community or society.

Research Abundance

The presence of a vast amount of studies, data, and scholarly work available on a particular topic, often making it challenging to navigate or synthesize the extensive information.