Miguez Corporation Makes a Product with the Following Standard Costs

question 60

Multiple Choice

Miguez Corporation makes a product with the following standard costs:
The company budgeted for production of 2,600 units in September, but actual production was 2,500 units. The company used 5,440 liters of direct material and 1,680 direct labor-hours to produce this output. The company purchased 5,800 liters of the direct material at $7.20 per liter. The actual direct labor rate was $24.10 per hour and the actual variable overhead rate was $1.90 per hour.
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 September is:

• A) $1,540 F
• B) $1,687 U
• C) $1,687 F
• D) $1,540 U

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Definitions:

Natural Tendency

An inherent inclination or disposition in living organisms towards certain behaviors or patterns of growth and development.

Genuine Feelings

Authentic emotions and sentiments that an individual experiences without pretense.

Destinies

The predetermined, inevitable, or unchangeable futures of individuals, groups, or concepts, often conceptualized as a force or power that predetermines events.

Family Therapist

A mental health professional specializing in treating psychological, emotional, and behavioral issues within the context of family relationships.