The Dexon Company Makes and Sells a Single Product, Called

question 79

Multiple Choice

The Dexon Company makes and sells a single product, called a Mip, and employs a standard costing system. The following standards have been established for one unit of Mip: $\begin{array}{|l|r|r|}\hline & \text { Standard Quantity or Hours } & \text { Standard Cost per Mip } \\\hline \text { Direct Materials } & 6 \text { board metre } & \$ 9.00 \\\hline \text { Direct Labour } & 0.8 \text { hours } & \$ 9.60 \\\hline\end{array}$
There were no inventories of any kind on August 1. During August, the following events occurred:
Purchased 15,000 board metres at the total cost of $\$ 24,000$ .
Used 12,000 board metres to produce 2,100 Mips.
Used 1,700 hours of direct labour time at a total cost of $\$ 20,060$ .
- To record the incurrence of direct labour cost and its use in production,the general ledger would include what entry to the Labour Rate Variance account?

• A) $240 credit.
• B) $240 debit.
• C) $340 debit.
• D) $340 credit.

---

Definitions:

Efficiency

The ability to achieve a desired outcome with the minimum expense of time, effort, or resources.

Derailed Managers Study

Research focused on examining the factors and situations that lead to the failure or underperformance of individuals in managerial positions.

Mismanagement

Poor or inefficient management practices that result in organizational or project failure.

Certainty

A condition of being sure about something or having absolute conviction in the truth of facts, often considered in decision-making processes.