(Appendix 6A) Tremble Corporation Manufactures and Sells One Product

question 15

Multiple Choice

(Appendix 6A) Tremble Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 49,000 units and sold 45,000 units. The company's only product is sold for $233 per unit.
-Assume that the company uses a variable costing system that assigns $11 of direct labor cost to each unit that is produced.The unit product cost under this costing system is:

• A) $105 per unit
• B) $180 per unit
• C) $94 per unit
• D) $210 per unit

Recognize the need for updating standard costs in response to changes in production specifications, labor contracts, and material costs.

Understand the concept and calculation of direct labor variances, including rate and time variances.

Identify and calculate direct materials variances, including price and quantity variances.

Grasp the methods for calculating total factory overhead cost variances and understand their components.

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Definitions:

Type II Error

The error that occurs when the null hypothesis is wrongly accepted, failing to detect an effect or difference when there is one.

Testing Agency

An organization or body that performs standard tests or assessments on products, services, or individuals to ensure compliance with required specifications, standards, or regulations.

Level Of Significance

A threshold in hypothesis testing that defines the probability of rejecting a true null hypothesis, commonly set at 0.05 or 5%.

Insulin Administration

The process of delivering insulin into the body, typically by injection or through an insulin pump, to manage blood glucose levels.