Week 1 - Quiz (for Study).docx - Question 1 6 6 pts(TCO 10...

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Question 16 / 6 pts(TCO 10) Which of the following pertains primarily to the planning of fixed overhead costs?A standard rate per unit is developed.Only essential activities are to be undertaken.Activities are to be undertaken in the most efficient method.Correct!Key decisions are made at the start of the budget period determining the level of costs.
See Chapter 8.Question 26 / 6 pts(TCO 10) Sebastian Company, which manufactures electrical switches, uses a standard cost system and carries all inventories at standard. The standard manufacturing overhead costs per switch are based on direct labor hours and are shown below:Variable overhead (5 hours at $12 per direct manufacturing labor hour) $ 60Fixed overhead (5 hours at $15 per direct manufacturing labor hour,based on capacity of 200,000 direct manufacturing labor hours per month) 75Total overhead per switch$ 135The following information is available for the month of December:46,000 switches were produced, although 40,000 switches were scheduled to be produced.

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