Kartman Corporation Makes a Product with the Following Standard Costs

question 287

Multiple Choice

Kartman Corporation makes a product with the following standard costs: In June the company's budgeted production was 3,400 units but the actual production was 3,500 units. The company used 22,150 pounds of the direct material and 2,290 direct labor-hours to produce this output. During the month, the company purchased 25,400 pounds of the direct material at a cost of $170,180. The actual direct labor cost was $57,021 and the actual variable overhead cost was $8,931.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 variable overhead efficiency variance for June is:

• A) $760 Favorable
• B) $760 Unfavorable
• C) $741 Favorable
• D) $741 Unfavorable

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Definitions:

Transformational Leadership

A leadership approach that causes change in individuals and social systems, enhancing the motivation, morale, and performance of followers through a variety of mechanisms.

Morality

Principles concerning the distinction between right and wrong or good and bad behavior, often derived from society, culture, or religion.

Motivation

The psychological forces that compel individuals to act towards achieving goals or satisfying needs.

Leadership Style

Refers to the behavior and approach of leading others, including how decisions are made and how leaders interact with their teams.