JAX Inc
in Early 2009, US Company JAX Inc -What Was JAX Inc

question 3

Multiple Choice

JAX Inc.
In early 2009, US company JAX Inc. had budgeted for the production and sales of 6000 units at a sales price of $20 per unit. The following information is available regarding the standard cost for each unit:
Number of units produced
$\begin{array}{ll}\quad \text { and sold: } & 6800 \text { units } \\\text { Sales revenue: } & \$ 149600(\$ 22 \text { per unit) } \\\text { Direct materials cost: } & \$ 43384(14960 \text { lbs purchased and used at } \$ 2.90 \text { per lb) } \\\text { Direct labour cost: } & \$ 59024(210800 \text { minutes at } \$ .28 \text { per minute }) \end{array}$
-What was JAX Inc.'s direct labour rate variance for 2009?

• A) $1904 F
• B) $1904 U
• C) $6324 F
• D) $6324 U

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