The Phelps Company Applies Overhead Costs to Products on the Basis

question 51

Multiple Choice

The Phelps Company applies overhead costs to products on the basis of standard direct labor-hours. The standard cost card shows that 5 direct labor-hours are required per unit of product. Phelps Company had the following budgeted and actual data for March: The budgeted direct labor-hours is used as the denominator activity for the month.
-The fixed manufacturing overhead volume variance for March is:

• A)$1,000 favorable
• B)$5,000 favorable
• C)$2,500 unfavorable
• D)$5,000 unfavorable

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Definitions:

Hypostyle

An architectural element that features a hall or space with a roof supported by columns, often used in Ancient Egyptian and Islamic structures.

Colonnaded

Architecturally, featuring a row of columns supporting a structure, often used in classical buildings.

Apsidal

Rounded; apse-shaped.

Ben-ben

In ancient Egyptian mythology, the ben-ben was the mound that arose from the primordial waters Nu upon which the creator god Atum settled.