Machine Builders Inc

question 32

Multiple Choice

Machine Builders Inc.adopted a standard cost system several years ago that it uses in conjunction with its process cost system.The per-unit standard costs for direct materials and direct labor for its single product are as follows: Materials: 4 kilograms/unit x $10.00 per kilogram = $40.00/unit;labor: 4 hours/unit x $18.00 per hour = $72.00/unit.All materials are issued at the beginning of processing.The operating data shown below were taken from the records for July:
The direct labor rate variance for July is:

• A)$6,600 favorable.
• B)$16,600 favorable.
• C)$21,000 unfavorable.
• D)$57,600 unfavorable.
• E)$58,200 unfavorable.

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Definitions:

Office Supplies Expense

The cost associated with purchasing supplies used in the daily operations of an office.

Office Supplies

Materials and items used daily in offices for administrative tasks and functions, not part of inventory sold.

Purchased

The act of buying goods, services, or assets.

Calendar-Year

A one-year period that begins on January 1 and ends on December 31, based on the Gregorian calendar, commonly used for financial and administrative purposes.