Miguez Corporation Makes a Product with the Following Standard Costs

question 203

Multiple Choice

Miguez Corporation makes a product with the following standard costs: The company budgeted for production of 2,600 units in September, but actual production was 2,500 units. The company used 5,440 liters of direct material and 1,680 direct labor-hours to produce this output. The company purchased 5,800 liters of the direct material at $7.20 per liter. The actual direct labor rate was $24.10 per hour and the actual variable overhead rate was $1.90 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 September is:

• A) $1,540 F
• B) $1,687 U
• C) $1,687 F
• D) $1,540 U

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Definitions:

Distinctly American Character

Unique qualities or cultural aspects that define the identity of the United States, including individualism, freedom, and diversity.

Agriculture

The science, art, and business of cultivating soil, producing crops, and raising livestock; it is a key sector for food production and rural livelihoods.

Assimilation Strategies

Plans or methods used to integrate individuals or groups into a different culture or society, often by adopting its customs and attitudes.

Cherokee

A Native American people historically settled in the southeastern United States, known for their rich culture, forced relocation via the Trail of Tears, and significant contributions to American society.