Use the Following to Answer Questions

question 15

Multiple Choice

Use the following to answer questions
BAK Systems, Inc. gathered the following direct labor cost information for the month of July:

-The direct labor usage variance is:

• A)$15,275U
• B)$23,975U
• C)$15,730F
• D)$23,520F

---

Definitions:

Sales Commissions

Payments made to sales personnel based on the sales volume or value they have achieved.

Opportunity Cost

The potential benefit that is given up when one alternative is selected over another.

Variable Selling

Variable selling costs are expenses that fluctuate with sales volume, such as commissions and credit card fees, which increase as sales increase.

Administrative Expense

Costs related to the general administration of a business, such as salaries of executive officers and costs of the head office.