Shade Company Adopted a Standard Cost System Several Years Ago

question 30

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 flexible-budget variance for December (rounded to the nearest dollar) was:

• A) $1,590 favorable.
• B) $5,650 unfavorable.
• C) $7,040 unfavorable.
• D) $9,830 unfavorable.

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Definitions:

Electroencephalograph

An instrument used to record the electrical activity of the brain, commonly known as an EEG.

Electrocardiograph

A medical device that records the electrical activity of the heart over a period of time, used in the diagnosis and monitoring of heart diseases and conditions.

Lesioning

A research or therapeutic technique involving the damage or removal of tissue within the brain or another part of the body to study or treat dysfunctions.

Magnetic Resonance Imaging

A radiological method for creating images of the body's structure and its physiological activities.