Freiling Corporation Manufactures One Product

question 113

Multiple Choice

Freiling Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. There is no variable manufacturing overhead. The standard cost card for the company's only product is as follows: During the year, the company assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 14,890 hours at an average cost of $22.80 per hour.Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.
When the direct labor cost is recorded in transaction (c) above, which of the following entries will be made?

• A) $8,800 in the Labor Rate Variance column
• B) ($8,800) in the Labor Rate Variance column
• C) $8,800 in the Labor Efficiency Variance column
• D) ($8,800) in the Labor Efficiency Variance column

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Definitions:

Nutrient Detectors

Specialized cells or mechanisms in the body that sense and respond to specific nutrients, helping to regulate dietary intake and nutritional status.

Blood Glucose

The concentration of glucose present in the blood, essential for providing energy to cells throughout the body.

Metabolic Rate

The rate at which the body burns calories to produce energy.

Calories

Units of energy in food, quantifying the amount of energy provided to the body when consumed.