Cole Laboratories Makes and Sells a Lawn Fertilizer Called Fastgro

question 174

Multiple Choice

Cole Laboratories makes and sells a lawn fertilizer called Fastgro. The company has developed standard costs for one bag of Fastgro as follows:
$\begin{array}{|l|r|r|}\hline & \text { Standard Quantity } & \text { Standard Cost per Bag } \\\hline \text { Direct Materials } & 20 \text { kilograms } & \$ 8.00 \\\hline \text { Direct Labour } & 0.1 \text { hours } & 1.10 \\\hline \text { Variable Manufacturing Overhead } & 0.1 \text { hours } & .40\\\hline \end{array}$
The company had no beginning inventories of any kind on January 1. Variable manufacturing overhead is applied to production on the basis of direct labour hours. The results of the company's operations during January are as follows:
$\begin{array}{|l|r|}\hline \text { Production of Fastgro: } & 4,000 \text { bags } \\\hline \text { Direct Materials Purchased } & 85,000 \text { kilograms at a cost of } \$ 32,300 \\\hline \text { Direct Labour Used } & 390 \text { hours at a cost of } \$ 4,875 \\\hline \text { Variable Manufacturing Overhead Incurred } & \$ 1,475 \\\hline \text { Inventory of Direct Materials on January } 31 & 3,000 \text { kilograms } \\\hline\end{array}$
-What was the labour efficiency variance for January? Do not round intermediate calculations.

• A) $110 favourable.
• B) $130 unfavourable.
• C) $350 unfavourable.
• D) $475 favourable.

Differentiate between various types of lakes based on nutrient content and productivity.

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Definitions:

Registration Statement

A legal document filed with the Securities and Exchange Commission by companies wishing to issue new securities to the public, containing financial and other significant details.

Accounts Receivable

Money owed to a business by its customers for goods or services that have been delivered or used but not yet paid for.

Unqualified Opinion

In auditing, an unqualified opinion is a report that expresses a clean audit result, indicating that the financial statements of an entity are fairly and appropriately presented, without any identified exceptions.

Materially Overstated

A significant overestimation of financial figures, leading to inaccurate financial reporting.