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:

Satyriasis

An excessive or pathological sex drive in men, often equated with the female condition called nymphomania.

Menarche

The onset of menstruation.

Menopause

The period in a woman's life, typically between 45 and 55 years of age, when menstruation ceases, marking the end of reproductive capability.

Paraphilia

Unusual sexual interests, which may involve non-consenting partners, the suffering or humiliation of oneself or one’s partner, or children.