Reference: 11-02
the Litton Company Has Established Standards as Follows

question 8

Multiple Choice

Reference: 11-02
The Litton Company has established standards as follows:
Direct material 3 kg @ $4/kg = $12 per unit
Direct labour 2 hrs. @ $8/hr. = $16 per unit
Variable manuf. overhead 2 hrs. @ $5/hr. = $10 per unit
Actual production figures for the past year are given below. The company records the materials price variance when materials are purchased.
$\begin{array} { | l | l | l | } \hline\quad\quad\quad&\quad\quad\quad&\quad\quad\\\hline\quad\quad\quad&\quad\quad\quad&\quad\quad\\\hline\quad\quad\quad&\quad\quad\quad&\quad\quad\\\hline\quad\quad\quad&\quad\quad\quad&\quad\quad\\\hline\quad\quad\quad&\quad\quad\quad&\quad\quad\\\hline\quad\quad\quad&\quad\quad\quad&\quad\quad\\\hline\end{array}$
Units produced 600
Direct material used 2,000 kg
Direct material purchased (3,000 kg) $11,400
Direct labour cost (1,100 hrs.) $ 9,240
Variable manuf. overhead cost incurred $ 5,720
The company applies variable manufacturing overhead to products on the basis of direct labour hours.
-In a certain standard costing system the following results occurred last period: labour rate variance, $1,000 U; labour efficiency variance, $2,800 F; and the actual labour rate was $0.20 more per hour than the standard labour rate. The number of actual direct labour hours used last period was:

• A)4,800.
• B)5,400.
• C)5,000.
• D)9,000.

Explore the concept of self-disclosure and the norm of reciprocity in social interactions.

Understand the factors influencing consumer decision-making processes.

Identify different types of risks involved in purchase decisions and how they impact consumer behavior.

Recognize the significance of determinant attributes in consumer choice.

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Definitions:

Prior Service Cost

Costs that arise when a pension plan is amended to increase benefits for employee service provided in prior periods, recognized over the service periods of affected employees.

Unrecognized Prior Service Cost

Costs associated with retroactive benefits granted in pension plans, which are not immediately recognized as an expense but are amortized over time.

Years-Of-Future-Service Method

An actuarial technique used to calculate pension benefits, taking into account the expected years of service remaining for an employee.

Defined Benefit Pension Plan

A retirement plan where employee benefits are calculated using a formula that considers several factors, such as length of employment and salary history, with the employer bearing the investment risk.