Doogan Corporation Makes a Product with the Following Standard Costs

question 108

Multiple Choice

Doogan Corporation makes a product with the following standard costs: The company produced 5,200 units in January using 39,310 grams of direct material and 2,380 direct labor-hours. During the month, the company purchased 44,400 grams of the direct material at $1.70 per gram. The actual direct labor rate was $19.30 per hour and the actual variable overhead rate was $6.80 per hour.
The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
The labor efficiency variance for January is:

• A) $4,246 U
• B) $4,246 F
• C) $4,400 U
• D) $4,400 F

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Definitions:

Need For Achievement

A psychological trait that drives individuals to pursue and attain challenging goals or standards of excellence.

Equity Concepts

Principles related to fairness, justice, and impartiality within various contexts such as economics, law, and social interactions.

Collective Societies

Societies that prioritize the group over the individual, emphasizing shared goals, cooperation, and interdependence.

Expectancy Theory

A motivational theory suggesting that an individual's effort, performance, and motivation are influenced by their expectations of achieving desired outcomes.