Reference: 11-10
the Following Labour Standards Have Been Established for a Particular

question 135

Multiple Choice

Reference: 11-10
The following labour standards have been established for a particular product: $$\begin{array}{l}\begin{array} { | l | l | } \hline \text { Standard labour hours per unit of output } & 7.5 \text { hours } \\\hline \text { Standard labour rate } & \$ 15.25 \text { per hour } \\\hline\end{array}\\\text { The following data pertain to operations concerning the product for the last month: }\\\begin{array} { | l | l | } \hline \text { Actual hours worked } & 9,600 \text { hours } \\\hline \text { Actual total labour cost } & \$ 144,480 \\\hline \text { Actual units of output } & 1,200 \\\hline\end{array}\end{array}$$
-Under a standard cost system, the material price variances are usually the responsibility of the:

• A)purchasing manager.
• B)engineering manager.
• C)production manager.
• D)sales manager.

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Definitions:

Debt Investments

Investments made in bonds or other debt instruments, where the investor lends money in exchange for interest payments.

Amortization

The allocation of the cost of an intangible asset to expense over its useful life in a systematic and rational manner.

Stock Investments

Purchases of shares in other companies, intended as a long-term investment or to exert control or influence over those companies.

Cash

Money in the form of coins or banknotes, especially that held by an organization or in bank accounts.