The Claus Corporation Makes and Sells a Single Product and Uses

question 17

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 fixed manufacturing overhead cost used to compute the predetermined overhead rate was:

• A)$31,500
• B)$30,625
• C)$32,375
• D)$33,250

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Definitions:

Voluntary Action

An activity or action undertaken by an individual out of free will, without external compulsion or coercion.

Stimulus Generalization

A psychological phenomenon in which a response to a specific stimulus becomes associated with similar stimuli, causing the same response.

Stimulus Discrimination

Stimulus Discrimination is the learned ability to differentiate among similar stimuli and respond only to the actual stimulus linked to a positive or negative reinforcement.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a response without prior learning or conditioning.