Doogan Corporation Makes a Product with the Following Standard Costs

question 181

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 efficiency variance for January is:

• A) $4,246 Unfavorable
• B) $4,246 Favorable
• C) $4,400 Unfavorable
• D) $4,400 Favorable

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Definitions:

Listening Styles

The preferred ways individuals pay attention to and process spoken information and communication.

Hearing

Physiological process of decoding sounds.

Listening

The active process of receiving, interpreting, and reacting to verbal and nonverbal messages from others.

Fact

Something that has been directly observed to be true and thus has been proven to be true.