The Dodge Company Makes and Sells a Single Product and Uses

question 32

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 fixed manufacturing overhead volume variance as:

• A)$7,500 F
• B)$1,500 F
• C)$3,750 U
• D)$7,500 U

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Definitions:

Complex Metal Hydrides

A class of compounds formed by the combination of a metal with hydrogen, typically used as hydrogen storage materials.

Ketones

Organic compounds characterized by the presence of a carbonyl group bonded to two carbon atoms.

Alcohols

Organic compounds containing a hydroxyl (-OH) group attached to a saturated carbon atom, and are widely used in industry and chemistry.

Reaction

A reaction in chemistry refers to the process in which substances, known as reactants, undergo chemical transformation to produce new substances, known as products.