The Hawkins Company Uses a Standard Costing System in Which

question 52

Multiple Choice

The Hawkins Company uses a standard costing system in which manufacturing overhead is applied on the basis of standard direct labor-hours (DLHs) . During February, the company actually used 9,200 direct labor-hours and made 2,900 units of finished product. The standard cost card for one unit of product includes the following:

Variable factory overhead: 3 DLHs $4.75 per DLH
Fixed factory overhead: 3 DLHs $3.00 per DLH

For February, the company incurred $28,450 in fixed manufacturing overhead costs and recorded a $900 favorable volume variance.

-The denominator activity level in direct labor-hours used by Hawkins in setting the predetermined overhead rate for February is:

• A)9,300 hours
• B)8,400 hours
• C)9,000 hours
• D)8,700 hours

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Definitions:

Lower-Status Listener

A listener perceived to have a lower hierarchical position or less power in a given social or professional context, affecting communication dynamics.

Disbursement

Any payment of funds made by the physician’s office for goods and services.

Accounts Receivable

The outstanding invoices a company has or the money the company is owed from its clients.

Voucher

A document or code that entitles the holder to a discount or that may be exchanged for goods or services.