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.

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Definitions:

Unconscious Conflicts

Deep-seated tensions and struggles within an individual that they are not fully aware of but influence behaviors and emotions.

Irrational Thinking

Thought processes characterized by illogical or unreasonable conclusions, often leading to negative emotions or behaviors.

Systematic Desensitization

A behavioral therapy technique used to reduce phobic responses and anxiety through gradual exposure to the feared object or situation, combined with relaxation exercises.

Flooding Therapy

A form of behavior therapy used to treat phobias and anxiety disorders by exposing the patient to their fear at full intensity.