Doogan Corporation Makes a Product with the Following Standard Costs

question 338

Multiple Choice

Doogan Corporation makes a product with the following standard costs: The company produced 5,200 units in January using 39,310 grams of direct material and 2,380 direct labor-hours. During the month, the company purchased 44,400 grams of the direct material at $1.70 per gram. The actual direct labor rate was $19.30 per hour and the actual variable overhead rate was $6.80 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 labor rate variance for January is:

• A) $1,666 Favorable
• B) $1,820 Favorable
• C) $1,666 Unfavorable
• D) $1,820 Unfavorable

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Definitions:

Control Group

In experimental research, the group that does not receive the experimental treatment, serving as a comparison for evaluating the effect of that treatment.

Treatment Effectiveness

Treatment effectiveness refers to the extent to which a medical or psychological intervention successfully achieves the desired health outcomes in the real world.

Psychotropic Medications

Drugs that affect mental processes and that can be used to treat psychological disorders.

Transcranial Magnetic Stimulation

A noninvasive procedure using magnetic fields to stimulate nerve cells in the brain, often used in treating depression.