Reference: 11-03
the Albright Company Uses Standard Costing and Has

question 131

Multiple Choice

Reference: 11-03
The Albright Company uses standard costing and has established the following standards for its single product: $$\begin{array} { | l | l | } \hline \text { Direct materials } & 2 \text { litres at } \$ 3 \text { per litre } \\\hline \text { Direct labour } & 0.5 \text { hours at } \$ 8 \text { per hour } \\\hline \text { Variable manuf. overhead } & 0.5 \text { hours at } \$ 2 \text { per hour } \\\hline \begin{array} { l } \text { During November, the company made } 4,000 \text { units } \\\text { and incurred the following costs: }\end{array} & \\\hline \text { Direct materials purchased } & 8,100 \text { litres at } \$ 3.10 \\\hline & \text { per litre } \\\hline \text { Direct materials used } & 7,600 \text { litres } \\\hline \text { Direct labour used } & 2,200 \text { hours at } \$ 8.25 \text { per hour } \\\hline \text { Actual variable manuf. overhead } & \$ 4,175 \\\hline\end{array}$$ The company applies variable manufacturing overhead to products on the basis of direct labour hours.
-The labour rate variance for November was?

• A)$2,150 U.
• B)$550 U.
• C)$1,050 U.
• D)$2,150 F.

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Definitions:

Woodruff Key

A Woodruff key is a semi-circular shaped, removable key that fits into a circular recess in a shaft, allowing it to engage with a corresponding slot in a mating part to prevent relative rotation while permitting axial movement.

Semi-Permanent

A state or condition that is intended to last for a long time but not forever, often applied to structures or installations.

Schematic

A simplified representation of a system or circuit that uses symbols and lines to illustrate structure or function without showing actual layout.

Thread Representation

A standardized way of depicting the thread on fasteners or tapped holes in technical drawings, indicating form, pitch, and diameter.