Reference: 11-02
the Litton Company Has Established Standards as Follows

question 11

Multiple Choice

Reference: 11-02
The Litton Company has established standards as follows:
Direct material 3 kg @ $4/kg = $12 per unit
Direct labour 2 hrs. @ $8/hr. = $16 per unit
Variable manuf. overhead 2 hrs. @ $5/hr. = $10 per unit
Actual production figures for the past year are given below. The company records the materials price variance when materials are purchased. $$\begin{array} { | l | l | l | } \hline \text { Units produced } & 600 & \\\hline \text { Direct material used } & 2,000 & \mathrm {~kg} \\\hline \text { Direct material purchased } ( 3,000 \mathrm {~kg} ) & \$ 11,400 & \\\hline \text { Direct labour cost } ( 1,100 \text { hrs. } ) & \$ 9,240 & \\\hline \text { Variable manuf. overhead cost incurred } & \$ 5,720 & \\\hline\end{array}$$ The company applies variable manufacturing overhead to products on the basis of direct labour hours.
-The labour rate variance is:

• A)$480 F.
• B)$480 U.
• C)$440 F.
• D)$440 U.

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Definitions:

Functional Assessment

An evaluation of an individual's ability to perform tasks or activities of daily living, often used in healthcare to determine needs for services or support.

Day-to-day Activities

Routine tasks and chores that are carried out regularly, forming the basics of daily life.

Functional Assessment

An evaluation of an individual's ability to perform activities of daily living and fulfill roles and responsibilities in their personal and social life.

Method of Discipline

An approach or technique used to teach or correct behavior, often discussed in parenting, education, or organizational contexts.