Answer Corporation Uses Standard Cost System $\text {Standard Costs}$ $\begin{array}{ll}\text { Direct materials } & 2,500 \text { kilograms } @ \$ 8 \\\text { Direct labor } & 7,500 \text { hours } @ \$ 12\end{array}$

question 138

Multiple Choice

Answer Corporation uses standard cost system.The standard costs and actual costs for direct materials, direct labor, and factory overhead for the manufacture of 2,500 units of product are as follows: $\text {Standard Costs}$
$\begin{array}{ll}\text { Direct materials } & 2,500 \text { kilograms } @ \$ 8 \\\text { Direct labor } & 7,500 \text { hours } @ \$ 12\end{array}$

$\text { Actual Costs }$
$\begin{array}{ll}\text { Direct materials } & 2,600 \text { kilograms } @ \$ 8.75 \\\text { Direct labor } & 7,400 \text { hours } @ \$ 11.40\end{array}$

? Factory overhead (100% capacity - 10,000 hrs.) :
Variable cost @ $2 per hour
Total variable cost, $18,000
Fixed cost @ $0.80 per hour
Total fixed cost, $8,000
?
The amount of the direct labor rate variance is:

• A) $4,440 unfavorable.
• B) $4,500 favorable.
• C) $4,440 favorable.
• D) $4,500 unfavorable.

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Definitions:

Depersonalization Disorder

A mental disorder characterized by persistent or recurrent feelings of detachment from one's own body, thoughts, or emotions.

Factitious Disorder

A psychiatric disorder where an individual deliberately fabricates, exaggerates, or induces physical or psychological symptoms for the sake of assuming a sick role.

Rumination

The process of continuously thinking about the same thoughts, often negative, which can intensify feelings of stress or distress.

Social Support

The assistance and comfort received from friends, family, and the community, which can be emotional, informational, or material.