The Dexon Company Makes and Sells a Single Product, Called

question 170

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 costs and its use in production,the general ledger would include what entry to the Labour Efficiency Variance account?

• A) $240 debit.
• B) $480 credit.
• C) $1,200 debit.
• D) $1,200 credit.

---

Definitions:

Nurture

The influence of external factors after conception, such as environmental and educational experiences, on personal development.

Risk Factors

Elements or conditions that increase the likelihood of an undesirable outcome or disease.

Genetic Influences

The impact that an individual's genes have on their traits, behaviors, and susceptibility to certain conditions or diseases.

Environmental Perceptions

The individual or collective interpretation and awareness of the environmental factors and conditions surrounding them.