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:

Tongue Shape

Refers to the form or configuration of the tongue, which can vary and may influence speech, taste, and chewing functions.

Lipid-Soluble Drugs

Refers to medications that can dissolve in lipids (fats) and can easily pass through cell membranes, often affecting the central nervous system.

Taste Buds

Sensory organs located on the tongue and in the oral cavity that are responsible for perceiving taste.

Absorbed

The process by which substances are taken up by a tissue, such as the absorption of nutrients by the digestive tract.