The Following Information Summarizes the Standard Cost for Producing One

question 136

Multiple Choice

The following information summarizes the standard cost for producing one metal tennis racket frame at Spaulding Industries. In addition, the variances for one month's production are given. Assume that all inventory accounts have zero balances at the beginning of the month.
$\begin{array}{lcc}&\text { Standard Cost Per }&\text {Standard Monthly }\\&\text { Uunit}&\text { Costs}\\\text { Materials } & \$ 4.00 & \$ 8,400 \\\text { Direct Labor 2 hrs @ \$2.60 } & 5.20 & 10,920\\\text { Factory Overhead: } & & \\\text { Variable } & 1.80 & 3,780 \\\text { Fixed } & \underline{5.00} & \underline{10,500}\\& \underline{\$16.00}& \underline{\$33,600}\end{array}$

$\begin{array}{llrl}\text { Variances: }\\\text { Material price } & \$ 244.75 & \text { unfavorable } \\\text { Material quantity } & \$ 500.00 & \text { unfavorable } \\\text { Labor rate } & \$ 520.00 & \text { favorable } \\\text { Labor efficiency } & \$ 2,080.00 & \text { unfavorable }\end{array}$
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What were the actual direct labor hours worked during the month?

• A) 5,000
• B) 4,800
• C) 4,200
• D) 4,000

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Definitions:

Moral Principles

Fundamental beliefs about what is right and wrong or good and bad behavior.

Beneficence

The principle of doing good and preventing harm, often discussed as an ethical foundation in medicine and healthcare.

Non-maleficence

A principle in ethics, especially in healthcare, that emphasizes the avoidance of causing harm to others.

Justice

The moral principle of fairness and the administration of the law to ensure that people receive what is rightfully theirs.