Shade Company Adopted a Standard Cost System Several Years Ago

question 65

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 rate variance for December, to the nearest dollar, was:

• A) $1,590 favorable.
• B) $5,650 favorable.
• C) $7,790 unfavorable.
• D) $24,410 unfavorable.
• E) $59,410 unfavorable.

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Definitions:

Marginal Mean

The average value of a variable in a dataset, keeping other variables constant.

Low Crime Area

A geographic region characterized by significantly lower instances of criminal activity compared to the surrounding areas or national averages.

Factorial Designs

Experimental setups that allow researchers to examine the effects of two or more independent variables on a dependent variable simultaneously.

Single-Factor Designs

Experimental setups that involve only one independent variable to test its effect on a dependent variable.