The Dexon Company Makes and Sells a Single Product, Called

question 170

Multiple Choice

The Dexon Company makes and sells a single product, called a Mip, and employs a standard costing system. The following standards have been established for one unit of Mip: $\begin{array}{|l|r|r|}\hline & \text { Standard Quantity or Hours } & \text { Standard Cost per Mip } \\\hline \text { Direct Materials } & 6 \text { board metre } & \$ 9.00 \\\hline \text { Direct Labour } & 0.8 \text { hours } & \$ 9.60 \\\hline\end{array}$
There were no inventories of any kind on August 1. During August, the following events occurred:
Purchased 15,000 board metres at the total cost of $\$ 24,000$ .
Used 12,000 board metres to produce 2,100 Mips.
Used 1,700 hours of direct labour time at a total cost of $\$ 20,060$ .
- To record the incurrence of direct labour costs and its use in production,the general ledger would include what entry to the Labour Efficiency Variance account?

• A) $240 debit.
• B) $480 credit.
• C) $1,200 debit.
• D) $1,200 credit.

Recognize the impact of cognitive and environmental stimulation on learning and intelligence.

Understand the complexities of language processing, metacognition, and academic achievements in school environments.

Identify and understand various logical fallacies in arguments.

Distinguish between credible and non-credible sources of information.

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Definitions:

Consolidated Net Income

The total net income of a parent company and its subsidiaries after intercompany transactions have been eliminated, presented in a single figure.

Goodwill

An intangible asset that arises when a company acquires another company for a price higher than the fair value of its net identifiable assets.

Trial Balance

An accounting report that lists the balances of all ledgers in two columns, debit and credit, ensuring that total debits equal total credits.

Consolidated Balance Sheet

A financial statement that presents the assets, liabilities, and shareholders' equity of a conglomerate, combining the figures of the parent company and its subsidiaries.