The Dodge Company Makes and Sells a Single Product and Uses

question 41

Multiple Choice

The Dodge Company makes and sells a single product and uses a standard cost system in which manufacturing overhead costs are applied to units of product on the basis of standard direct labor-hours. The standard cost card shows that 5 direct labor-hours are required per unit of product. The Dodge Company had the following budgeted and actual data for the year:

The budgeted direct labor-hours is used as the denominator activity for the month.
-The variable overhead rate variance was:

• A)$4,500 U
• B)$10,500 U
• C)$13,500 U
• D)$16,500 U

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Definitions:

Gestalt

A psychological approach emphasizing the perception of whole figures or patterns rather than the simple sum of parts, under the principle that "the whole is different than the sum of its parts."

Figure-Ground Relationship

A concept in visual perception where the viewer separates an object (the figure) from its surrounding area (the ground) to focus their attention and interpret images.

Visual Cliff

A laboratory device for testing depth perception in infants and young animals.

Retinal Disparity

The slight difference in the visual images that reach each eye, which is crucial for depth perception.