The Claus Corporation Makes and Sells a Single Product and Uses

question 68

Multiple Choice

The Claus Corporation makes and sells a single product and uses standard costing. During January, the company actually used 8,700 direct labor-hours (DLHs) and produced 3,000 units of product. The standard cost card for one unit of product includes the following:

Variable factory overhead: 3.0 DLHs @ $4.00 per DLH.
Fixed factory overhead: 3.0 DLHs @ $3.50 per DLH.

For January, the company incurred $22,000 of actual fixed manufacturing overhead costs and recorded a $875 favorable volume variance.

-The denominator level of activity in direct labor-hours (DLHs) used by Claus in setting the predetermined overhead rate for January is:

• A)9,500 DLHs
• B)9,250 DLHs
• C)8,750 DLHs
• D)10,500 DLHs

Comprehend the principles behind the spending multiplier and its impact on the economy.

Distinguish between expansionary and contractionary fiscal policies and their uses in addressing economic gaps.

Recognize the long-run and short-run effects of fiscal policies on the economy.

Assess the impact of fiscal policy on equilibrium output, employment levels, and price levels.

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Definitions:

G. Stanley Hall

An American psychologist and educator, known as one of the founders of child psychology and educational psychology.

Motor Development

Motor development refers to the progression of muscular coordination required for physical activities, including crawling, walking, and grasping, among other movements.

Qualitative Changes

refers to transformations that significantly alter the nature or character of an entity, often in the context of developmental processes and psychological growth.

Quantitative Changes

Alterations that can be measured or quantified, often referring to development or growth that increases in size, amount, or degree.