Shade Company Adopted a Standard Cost System Several Years Ago

question 61

Multiple Choice

Shade Company adopted a standard cost system several years ago. The standard costs for direct labor and direct materials for its single product are as follows: Materials (5 kilograms × $12.00/kilogram) = $60.00/unit; direct labor (3.5 hours/unit × $20.00/hour) = $70.00/unit. All materials are issued at the beginning of processing. The operating data shown below were taken from the records for December:The direct labor efficiency variance for December, to the nearest dollar, was:

• A) $1,590 favorable.
• B) $5,650 favorable.
• C) $7,240 unfavorable.
• D) $59,410 unfavorable.

Differentiate between various categories of constraints (inequality/equality, binding/nonbinding).

Grasp fundamental steps involved in building linear optimization models.

Understand potential outcomes of a linear optimization model, including unboundedness and infeasibility.

Recognize the significance of reduced cost and shadow prices in linear optimization models.

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Definitions:

Best-Cost Provider

A strategy where a company aims to offer products or services that are of high quality and relatively low cost to attain a competitive advantage.

Porter's

Porter's frameworks involve strategic tools created by Michael Porter, such as the Five Forces analysis and the Value Chain, used for assessing the competitive environment and organizational capabilities.

Locally Grown

Refers to products, especially food items, that are produced and consumed within a relatively small geographic area.

Mission

The fundamental purpose of an organization, stated in a way that captures its goals, underlying philosophies, and core values.