Reference: 11-05
the Dexon Company Makes and Sells a Single

question 99

Multiple Choice

Reference: 11-05
The Dexon Company makes and sells a single product called a Mip and employs a standard costing system. The following standards have been established for one unit of Mip: $$\begin{array} { | l | l | l | } \hline & \text { Standard Quantity of Hours } & \text { Standard Cost per Mip } \\\hline \text { Direct materials } & 6 \text { board metres } & \$ 9.00 \\\hline \text { Direct labour } & 0.8 \text { hours } & \$ 9.60 \\\hline\end{array}$$ There were no inventories of any kind on August 1. During August, the following events occurred: Purchased 15,000 board metres at the total cost of $24,000.
Used 12,000 board feet to produce 2,100 Mips.
Used 1,700 hours of direct labour time at a total cost of $20,060.
-If the actual labour hours worked exceed the standard labour hours allowed, what type of variance will occur?

• A)Unfavourable labour rate variance.
• B)Favourable labour rate variance.
• C)Unfavourable labour efficiency variance.
• D)Favourable labour efficiency variance.

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Definitions:

Unethical Sales Behaviour

Practices by sales personnel that are deceptive, misleading, or otherwise violate ethical standards, often to achieve sales targets or personal gain.

Strongly

With great force, intensity, or conviction.

Unethical Activities

Conduct that violates moral principles or standards of behavior expected in professional and personal settings, often resulting in harm or disadvantage to others.

Performance Goals

Targets set by individuals or teams to achieve specific achievements within a set timeframe.