Shade Company Adopted a Standard Cost System Several Years Ago

question 172

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 x $12.00 per kilogram) = $60.00/unit.Direct labor (3.5 hours x $20.00 per hour) = $70.00/unit.All materials were 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 is:

• 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:

Obsolescence

The process of becoming outdated or no longer used, often due to advancements in technology or changes in consumer preferences.

Warehousing

The act of storing goods that will be sold or distributed later, involving a wide range of activities including holding, handling, and managing inventory.

Airfreight

The transportation of goods by aircraft, often used for moving high-value or time-sensitive products over long distances quickly.

Accessibility

The ease with which people can reach, enter, or access a place, product, or service, often considering those with disabilities.