Miguez Corporation Makes a Product with the Following Standard Costs

question 418

Multiple Choice

Miguez Corporation makes a product with the following standard costs: The company budgeted for production of 2,600 units in September, but actual production was 2,500 units. The company used 5,440 liters of direct material and 1,680 direct labor-hours to produce this output. The company purchased 5,800 liters of the direct material at $7.20 per liter. The actual direct labor rate was $24.10 per hour and the actual variable overhead rate was $1.90 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 September is:

• A) $3,675 Favorable
• B) $3,528 Unfavorable
• C) $3,528 Favorable
• D) $3,675 Unfavorable

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Definitions:

Gestalt

An organized whole. Gestalt psychologists emphasized our tendency to integrate pieces of information into meaningful wholes.

Organized Whole

Organized whole refers to a concept in Gestalt psychology that emphasizes seeing patterns and objects as unified wholes rather than merely the sum of their parts.

Missing Notes

Essential details or information that are absent but necessary for understanding or completion of a task.

Familiar Melodies

Well-known sequences of musical notes that are easily recognizable and often evoke specific memories or emotions.