The Ferris Company Applies Manufacturing Overhead Costs to Products on the Basis

question 14

Multiple Choice

The Ferris Company applies manufacturing overhead costs to products on the basis of standard direct labor-hours. The standard cost card shows that 3 direct labor-hours are required per unit of product. For August, the company budgeted to work 90,000 direct labor-hours and to incur the following total manufacturing overhead costs: During August, the company completed 28,000 units of product, worked 86,000 direct labor-hours, and incurred the following total manufacturing overhead costs: The denominator activity in the predetermined overhead rate is 90,000 direct labor-hours.
-For August, the fixed manufacturing overhead volume variance is:

• A) $4,300 U
• B) $7,920 U
• C) $4,980 F
• D) $4,980 U

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Definitions:

Shift Instructions

In programming and digital systems, shift instructions are used to move or "shift" bits in a register or variable to the left or right, often for operations like multiplication or division.

Bit Shift Up

Bit shift up is a binary operation that moves the bits of a binary number to the left by a specified number of positions, effectively multiplying the number by a power of two.

Bit Shift Down

A binary operation that moves bits to a lower position, effectively dividing the number by two for each shift.

Sequencer Instruction

A command in PLC programming that controls the execution of a sequence of operations or steps, typically used in automation processes.