The Paul Company Makes Tables for Which the Following Standards

question 151

Multiple Choice

The Paul Company makes tables for which the following standards have been developed: $\begin{array}{cc}&\text { Standard Inputs } & \text { Standard Frice } \\&\text { Expected for Each } & \text { Expected per } \\&\text { Unit of Output } & \text { Unit of Output }\\\hline\text { Direct materials } & 10 \text { pounds } & \$ 4 \text { per pound } \\\text { Direct labor } & 3 \text { hours } & \$ 16 \text { per hour }\end{array}$ Production of 200 tables was expected in June, but 220 tables were actually completed. Direct materials purchased and used were 2,100 pounds at an actual price of $4.40 per pound.Direct-labor cost for the month was $10,620, and the actual pay per hour was $18.00._____ is the direct-labor quantity variance for the month of June.

• A)$1,120 favorable
• B)$1,120 unfavorable
• C)$1,260 favorable
• D)None of these answers is correct

Understand the concept and uses of a transitional matrix in HR planning.

Evaluate the benefits and challenges of outsourcing and its alternatives.

Understand the concept of frequency distribution tables.

Identify suitable graphical representations for different data types and levels of measurement.

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Definitions:

Discount Rate

The interest rate used to discount future cash flows to present value, often reflecting the cost of capital or risk level.

Payback Method

A method of investment appraisal that calculates the time required for the cash inflows from a project to repay its initial investment.

Cash Flows

The total amount of money being transferred into and out of a business, affecting the company's liquidity.

Cost Of Capital

The average rate of return a company must pay to its long-term creditors and shareholders for the use of their funds.