Kathleen's Company Produces Computer Monitors and Other Peripheral Devices for Computers

question 54

Multiple Choice

Kathleen's company produces computer monitors and other peripheral devices for computers. About six months ago, Kathleen began to keep track of number of hours worked, and the resulting output at her particular work site. Comparing the results, she found that the number of workers (and the hours they worked) remained relatively steady over the past six months, however, the work site's output increased significantly. This indicates that:

• A) productivity at the work site has increased.
• B) the work site sold-off some of its excess inventory.
• C) the company's prices have increased faster than the wages paid to workers.
• D) the company should hire more workers.

Comprehend the recording of raw material transactions and their effect on inventory accounts.

Grasp the application of standard costing in accounting for direct labor.

Understand the variance analysis in standard costing, including materials and labor variances.

Analyze the impact of fixed manufacturing overhead on Work in Process and its application in standard costing.

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Definitions:

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