Welch Company Budgeted the Following Cost Standards for the Current $= 1.40$

question 38

Multiple Choice

Welch Company budgeted the following cost standards for the current year: Direct materials $= 1.40$ kilograms per unit $@\$ 1.50$ per kilogram
Direct labour $= 0.75$ hours per unit $@ \$ 6$ per hour
Actual production and costs were as follows:
Units produced $= 2,800$
Direct materials used $= 4,500 \mathrm {~kg}$
Direct materials purchased $= 5,000 \mathrm {~kg}@$ a cost of $\$ 5,850$
Direct labour incurred $= 2,000$ hours at a cost of $\$ 13,000$
The labour efficiency variance was:

• A) $600 F
• B) $400 U
• C) $4,800 F
• D) $1,000 U

Comprehend the role of market and competitive analysis in launching nonprofit business ventures.

Identify different forms of social enterprises and their characteristics.

Understand the legal and strategic considerations in forming corporate partnerships and sponsorships.

Articulate the importance of sensitivity analysis in assessing business viability.

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Definitions:

Total Costs

The aggregate financial expense incurred in the production of goods or services, including both fixed and variable costs.

Average Fixed Costs

Production's steady costs, unchanged by the amount of production, divided across the output quantity.

Total Variable Costs

The overall expenses that vary directly with the level of production output, such as raw materials and labor.

Marginal Cost

The escalation of full cost associated with manufacturing an additional unit of a good or service.