The Tate Company Uses a Standard Costing System in Which

question 42

Multiple Choice

The Tate Company uses a standard costing system in which manufacturing overhead is applied on the basis of standard direct labor-hours (DLHs) . The company recorded the following costs and activity for September:
-The amount of fixed manufacturing overhead cost contained in the company's flexible budget for manufacturing overhead for September was:

• A) $61,400
• B) $57,000
• C) $60,000
• D) $58,550

---

Definitions:

Recession

A temporary economic slump, associated with a drop in business and manufacturing activities, commonly distinguished by a successive decline in GDP across two quarters.

Cyclical Unemployment

Cyclical unemployment is the component of overall unemployment that results from economic recessions or expansions, influenced by the business cycle.

Economy

An area or system in which goods and services are produced, distributed, and consumed by various agents, encompassing local to global scales.

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.