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

question 62

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.
-To record the incurrence of direct labour cost and its use in production, the general ledger would include what entry to the labour rate variance account?

• A)$340 debit.
• B)$340 credit.
• C)$240 debit.
• D)$240 credit.

Understand the difference between defined benefit and defined contribution plans including the risk bearing party.

Identify types of employee benefits and conditions affecting their provision.

Calculate the closing balance in the provision for annual leave account incorporating wage rises and leave taken.

Determine gross entitlements for employees leaving the company with untaken leave entitlements.

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A situation in an economy where all available labor resources are being used in the most efficient way possible, typically characterized by the absence of cyclical unemployment.

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