Community Manufacturing Inc

question 39

Multiple Choice

Community Manufacturing Inc. developed the following standard costs for direct material and direct labor for one of their major products, the 30-gallon heavy-duty plastic container.

During May, Community produced and sold 10,000 containers using 2,200 pounds of direct materials at an average cost per pound of $24 and 1,050 direct labor hours at an average wage of $14.75 per hour.
-May's direct labor rate variance was:

• A)$750.00 unfavorable.
• B)$262.50 favorable.
• C)$487.50 favorable.
• D)indeterminable using the above information.

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Definitions:

Corporate Shares

Units of ownership interest in a corporation that entitle the shareholder to a portion of the company's profits.

Shareholder

An individual or entity that owns shares in a corporation, thus holding a portion of the company's equity and possibly influencing its governance.

State Charter

A legal document granting a municipality the authority to operate in certain ways, essentially the municipal version of a constitution.

Double Taxation

The imposition of taxes on the same income, asset, or financial transaction at two different levels of government or in two different countries.