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.

---

Definitions:

Practical Intelligence

The ability to use information to get along in life and become successful.

Mental Age

Mental Age is a concept used to describe the level of intellectual development as compared to an average person's development at a certain age, often used in assessing intellectual capabilities in children.

Chronological Age

The exact age of an individual measured in years from the date of birth to the current date.

Alfred Binet

A French psychologist best known for creating the first intelligence test, the Binet-Simon scale.