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Doogan Corporation Makes a Product with the Following Standard Costs

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Doogan Corporation makes a product with the following standard costs: Doogan Corporation makes a product with the following standard costs:   The company produced 5,000 units in January using 10,310 grams of direct material and 2,290 direct labor-hours. During the month, the company purchased 10,880 grams of the direct material at $7.10 per gram. The actual direct labor rate was $11.70 per hour and the actual variable overhead rate was $3.00 per hour.The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.The materials quantity variance for January is: A)  $2,170 Favorable B)  $2,201 Unfavorable C)  $2,201 Favorable D)  $2,170 Unfavorable The company produced 5,000 units in January using 10,310 grams of direct material and 2,290 direct labor-hours. During the month, the company purchased 10,880 grams of the direct material at $7.10 per gram. The actual direct labor rate was $11.70 per hour and the actual variable overhead rate was $3.00 per hour.The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.The materials quantity variance for January is:


Definitions:

Pay Rates

The amount of money an employee receives for their work, often determined by hour, salary, or piece rate.

Top Talent

Top talent refers to the most highly skilled and capable individuals within a particular field or industry.

Labor Costs

The total sum of all compensation, benefits, and taxes paid to employees by an employer for their work.

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