Kartman Corporation Makes a Product with the Following Standard Costs

question 202

Multiple Choice

Kartman Corporation makes a product with the following standard costs: In June the company's budgeted production was 3,400 units but the actual production was 3,500 units. The company used 22,150 pounds of the direct material and 2,290 direct labor-hours to produce this output. During the month, the company purchased 25,400 pounds of the direct material at a cost of $170,180. The actual direct labor cost was $57,021 and the actual variable overhead cost was $8,931.
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 rate variance for June is:

• A) $1,890 F
• B) $2,061 U
• C) $2,061 F
• D) $1,890 U

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Definitions:

Parental Income

Refers to the total earnings obtained by a child's parents or guardians, which can impact the child's access to resources and opportunities.

Amount

A quantity of something, typically measured in numerical terms, indicating how much is present or required.

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Posttraumatic Stress Disorders

A mental health condition triggered by experiencing or witnessing a terrifying event, characterized by flashbacks, nightmares, and severe anxiety.