Cole Laboratories Makes and Sells a Lawn Fertilizer Called Fastgro

question 204

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 rate variance for January?

• A) $475 favourable.
• B) $475 unfavourable.
• C) $585 favourable.
• D) $585 unfavourable.

Comprehend the role of disasters and collective actions in effecting social change or expressing collective sentiments.

Appraise the influence of individual and group behaviours on the spread of stories or actions in a societal context.

Assess the relationship between social pressure, societal norms, and crowd behaviour.

Explain the sociological significance of moral entrepreneurs and their impact on societal norms and laws.

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Definitions:

Equity Method

An accounting technique used to record investments in other companies, where the investment is significant but does not grant control over the company.

Significant Influence

The ability to affect the financial and operating policies of another entity through ownership, contract, or other means, without having full control or ownership.

Other Revenue

Income a business earns from activities not related to its primary operations, such as rental income or interest earned.

Loss Section

A segment of financial statements or reports detailing losses, such as from operations or investments.