Franklin Glass Works Uses a Standard Cost System in Which

question 79

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 variable overhead rate variance for the year is:

• A)$20,000 unfavorable
• B)$22,000 favorable
• C)$22,000 unfavorable
• D)$20,000 favorable

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Definitions:

Sensory Impoverishment

A condition in which an individual has limited interaction with the sensory environment, leading to reduced sensory and cognitive development.

Left Hemisphere

The left side of the brain, typically associated with analytical tasks, language processing, and logical reasoning.

Language

A system of communication used by a particular community or country, consisting of written, verbal, or signed forms of communication.

Logical Thinking

The process of reasoning consistently and sensibly, using a structured and coherent approach to arrive at conclusions.