Majer Corporation Makes a Product with the Following Standard Costs

question 141

Multiple Choice

Majer Corporation makes a product with the following standard costs:
The company reported the following results concerning this product in February.
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 rate variance for February is:

• A) $1,146 U
• B) $1,176 U
• C) $1,176 F
• D) $1,146 F

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Definitions:

Imported Good

A product or service that is brought into one country from another, making it available for domestic consumption or use.

Protective Tariff

A tariff designed to shield domestic producers of a good or service from the competition of foreign producers.

Revenue Tariff

A tariff designed to produce income for the federal government.

Import Quota

A government-imposed limit on the quantity of a specific type of good that can be imported into a country over a set period of time.