Kartman Corporation Makes a Product with the Following Standard Costs

question 3

Multiple Choice

Kartman Corporation makes a product with the following standard costs:
In June the company's budgeted production was 3,400 units but the actual production was 3,500 units. The company used 22,150 pounds of the direct material and 2,290 direct labor-hours to produce this output. During the month, the company purchased 25,400 pounds of the direct material at a cost of $170,180. The actual direct labor cost was $57,021 and the actual variable overhead cost was $8,931.
The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
-The labor efficiency variance for June is:

• A) $4,560 F
• B) $4,560 U
• C) $4,731 U
• D) $4,731 F

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Definitions:

Single Corporation

An individual corporate entity, usually distinguished from a conglomerate or holding company owning multiple subsidiaries.

Autonomous

Having the ability to operate independently or self-govern without external control or influence, often used in reference to machines, systems, or organizations.

Homeless Shelter

A place providing temporary accommodation for people who do not have a permanent home.

Warming Shelters

Temporary shelters provided to homeless or marginalized individuals during the cold weather months to protect them from the harsh conditions.