Frogue Corporation Uses a Standard Cost System ? the Direct Labor Cost Variance Is:
A) $1,310 Favorable

question 2

Multiple Choice

Frogue Corporation uses a standard cost system.The following information was provided for the period that just ended: $\begin{array}{ll}\text { Actual price per kilogram } & \$ 3.00 \\\text { Actual kilograms of material used } & 31,000 \\\text { Actual hourly labor rate } & \$ 18.20 \\\text { Actual hours of production } & 4,900 \text { labor hours } \\\text { Standard price per kilogram } & \$ 2.80 \\\text { Standard kilograms per completed unit } & 6 \text { kilograms } \\\text { Standard hourly labor rate } & \$ 18.00\\\text { Standard time per completed unit } & 1 \mathrm{hr} \\\text { Actual total factory overhead } & \$ 34,900 \\\text { Actual fixed factory overhead } & \$ 18,000 \\\text { Standard fixed factory overhead rate } & \$ 1.20 \text { per labor hour } \\\text { Standard variable factory overhead rate } & \$ 3.80 \text { per labor hour } \\\text { Maximum plant capacity } & 15,000 \text { hours } \\\text { Units completed during the period } & 5,000\end{array}$ ? The direct labor cost variance is:

• A) $1,310 favorable.
• B) $820 favorable.
• C) $1,310 unfavorable.
• D) $820 unfavorable.

---

Definitions:

Dynamic System

A system characterized by constant change, activity, or progress, often used in reference to complex systems with various interdependent factors and variables.

Interrelated Parts

Components that are connected or related in such a way that changes in one part affect the others.

Proletariat

The class of wage-earners in a capitalist society, who, lacking substantial control over the means of production, sell their labor to live.

Bourgeoisie

The social class that owns the means of production during modern industrial capitalism, typically contrasted with the working class or proletarians.