Kokko Company Makes a Product That Is Expected to Require

question 101

Multiple Choice

Kokko Company makes a product that is expected to require 2 hours of labor per unit of product.The standard cost of labor is $6.00.Kokko actually used 2.1 hours of labor per unit of product.The actual cost of labor was $6.25 per hour.Kokko made 1,100 units of product during the period.Based on this information alone,the labor usage variance is:

• A) $190 favorable.
• B) $660 unfavorable.
• C) $600 favorable.
• D) $660 favorable.

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Definitions:

Condition Subsequent

A condition in a contract that, when fulfilled, terminates the contract or an obligation within the contract.

Obligation Performance

The duty or requirement to fulfill the terms of a contract or agreement.

Federal Fisheries Department

A government body responsible for the management and protection of the country's fisheries resources, including regulation, conservation, and development.

Breach of Contract

A violation of any of the agreed-upon terms and conditions of a binding contract.