$\text { The Litton Company has established standards as follows: }$

question 91

Multiple Choice

$\text { The Litton Company has established standards as follows: }$
$\begin{array}{|l|r|}\hline \text { Direct Material } & 3 \mathrm{kgs} @ @ 4 / \mathrm{kg} .=\$ 12 \text { per unit } \\\hline \text { Direct Labour } & 2 \mathrm{hrs} @ \$ 8 / \mathrm{hr} .=\$ 16 \text { per unit } \\\hline \text { Variable Manufacturing Overhead } & 2 \text { hrs. @ } \$ 5 / \mathrm{hr} .=\$ 10 \text { per unit } \\\hline\end{array}$
Actual production figures for the past year are given below. The company records the materials price variance when materials are purchased.
$\begin{array}{|l|r|}\hline \text { Units Produced } & 600 \\\hline \text { Direct Material Used } & 2,000 \mathrm{kgs} . \\\hline \text { Direct Material Purcahsed (3,000 kgs.) } & \$ 11,400 \\\hline \text { Direct Labour Cost }(1,100 \text { hrs. }) & \$ 9,240 \\\hline \text { Variable Manufacturing Overhead Cost Incurred } & \$ 5,720 \\\hline\end{array}$
The company applies variable manufacturing overhead to products on the basis of direct labour hours.
-What was the labour efficiency variance?

• A) $800 favourable.
• B) $800 unfavourable.
• C) $840 favourable.
• D) $840 unfavourable.

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Definitions:

Consistent Control

Involves maintaining steady and predictable management or regulation over a process, behavior, or mechanism to achieve desired outcomes.

Authoritative

A child-rearing style in which parents are restrictive and demanding, yet communicative and warm.

Power-assertive

A disciplinary strategy used by parents involving the use of authority, threats, or physical force to enforce child compliance.

Spare The Rod

A saying derived from Proverbs 13:24, often interpreted as advocating for or against physical discipline in child-rearing.