Kevin Jarvis Industries Produced 192000 Units in 90000 Direct Labor

question 96

Multiple Choice

Kevin Jarvis Industries produced 192000 units in 90000 direct labor hours. Production for the period was estimated at 198000 units and 99000 direct labor hours. A flexible budget would compare budgeted costs and actual costs respectively at

• A) 96000 hours and 99000 hours.
• B) 99000 hours and 90000 hours.
• C) 96000 hours and 90000 hours.
• D) 90000 hours and 90000 hours.

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Definitions:

Cost of Goods Sold

An expense reported on the income statement that represents the total cost of products or services that have been sold.

Retained Earnings

Accumulated profits of a company that are not distributed to shareholders as dividends but are reinvested in the business or held as reserves.

Retained Earnings Account

An equity account that represents the accumulated profits of a company that have not been distributed to shareholders as dividends.

Income Statement Account

An income statement account is a financial account that reflects income, expenses, gains, and losses over a period, used to calculate net income.