Franklin Glass Works Uses a Standard Cost System in Which

question 45

Multiple Choice

Franklin Glass Works uses a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours. Each unit requires two standard hours of direct labor 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 manufacturing overhead rate was $1.50 per direct labor-hour. The actual data pertaining to the manufacturing overhead for the year are presented below:
-Franklin's fixed manufacturing overhead budget variance for the year is:

• A)$19,000 favorable
• B)$25,000 favorable
• C)$25,000 unfavorable
• D)$19,000 unfavorable

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Definitions:

Moral

Principles or standards concerning the distinction between right and wrong or good and bad behavior.

Social Brain

The concept that the human brain has evolved to effectively manage social interactions and relationships.

Evolution

The process by which different kinds of living organisms are thought to have developed and diversified from earlier forms during the history of the earth.

Duplex Mind

The idea that the mind has two different processing systems (deliberate and automatic).