Crichton Company the Following Information Is for Crichton Company's July

question 124

Multiple Choice

Crichton Company The following information is for Crichton Company's July production:
$\begin{array}{ll}\textbf { Standard: }\\\text { Material } & 3.0 \text { feet per unit } @ \$ 4.20 \text { per foot } \\\text { Labor } & 2.5 \text { hours per unit } @ \$ 7.50 \text { per hour }\end{array}$

$\begin{array}{ll}\textbf { Actual: }\\\text { Production } & 2,750 \text { units produced during the month } \\\text { Material } & 8,700 \text { feet used; } 9,000 \text { feet purchased @ } \$ 4.50 \text { per foot } \\\text { Labor } & 7,000 \text { direct labor hours } \$ 7.90 \text { per hour }\end{array}$ (Round all answers to the nearest dollar.)
Refer to Crichton Company.What is the labor rate variance?

• A)$3,480 U
• B)$3,480 F
• C)$2,800 U
• D)$2,800 F

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Definitions:

HMO

Health Maintenance Organization, a type of health insurance plan that requires members to receive healthcare services from a network of designated providers.

Providers

Entities or individuals that supply services or goods.

Medicare

A federal health insurance program in the United States for people aged 65 and older, and for some younger people with disabilities.

Brand Name Drugs

Medications sold under a proprietary, trademarked name, as opposed to their generic equivalents.