Reference: 11-01
Bryan Company Employs a Standard Cost System in Which

question 14

Multiple Choice

Reference: 11-01
Bryan Company employs a standard cost system in which direct materials inventory is carried at standard cost. Bryan has established the following standards for the prime costs of one unit of product: $$\begin{array} { | l | l | l | l | } \hline & \text { Standard Quantity } & \text { Standard Price } & \text { Standard Cost } \\\hline \text { Direct materials } & 6.0 \text { grams } & \$ 3.50 / \text { gram } & \$ 21.00 \\\hline \text { Direct labour } & 1.3 \text { hours } & \$ 11.00 / \text { hour } & 14.30 \\\hline & & & \$ 35.30 \\\hline\end{array}$$ During March, Bryan purchased 165,000 grams of direct material at a total cost of $585,750. The total factory wages for March were $400,000, 90 percent of which were for direct labour. Bryan manufactured 25,000 units of product during March using 151,000 grams of direct material and 32,000 direct labour hours.
-The following standards for variable manufacturing overhead have been established for a company that makes only one product: $$\begin{array}{l}\begin{array} { | l | l | } \hline \text { Standard hours per unit of output } & 7.8 \text { hours } \\\hline \text { Standard variable overbead rate } & \$ 12.55 \text { per hour } \\\hline\end{array}\\\text { The following data pertain to operations for the last month: }\\\begin{array} { | l | l | } \hline \text { Actual hours } & 2,900 \text { hours } \\\hline \text { Actual total variable overhead cost } & \$ 31,330 \\\hline \text { Actual output } & 200 \text { units } \\\hline\end{array}\end{array}$$ What is the variable overhead efficiency variance for the month?

• A)$130 F.
• B)$4,320 U.
• C)$130 U.
• D)$4,320 F.

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Definitions:

Observational Learning

Learning that occurs by observing the behavior of others and the outcomes of those behaviors, without direct experience.

Mirror Neurons

Neurons that fire both when an individual performs an action and when they observe the same action performed by another, playing a role in learning and empathy.

Biological Basis

The underlying physical and genetic substrates that contribute to specific behavioral or physiological phenomena.

Observational Learning

Learning that occurs by watching and imitating the behaviors of others.