The Clark Company Makes a Single Product and Uses Standard

question 70

Multiple Choice

The Clark Company makes a single product and uses standard costing. Some data concerning this product for the month of May follow:
$\begin{array} { | l | r | } \hline \text { Labour rate variance } & \$ 7,000 \text { favourable } \\\hline \text { Labour efficiency variance } & \$ 12,000 \text { favourable } \\\hline \text { Variable overhead efficiency variance } & \$ 4,000 \text { favourable } \\\hline \text { Number of units produced } & 10,000 \\\hline \text { Standard labour rate per direct labour hour } & \$ 12 \\\hline \text { Standard variable overhead rate per direct labour hour } & \$ 4 \\\hline \text { Actual labour hours used } & 14,000 \\\hline \text { Actual variable manufacturing overhead costs } & \$ 58,290 \\\hline\end{array}$


-What are the standard hours allowed to make one unit of finished product?

• A) 1.0 hours.
• B) 1.2 hours.
• C) 1.5 hours.
• D) 2.0 hours.

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Definitions:

Financial Markets

Markets in which financial assets are traded—for example, the stock market.

Managements

The process of dealing with or controlling things or people within an organization, including planning, organizing, leading, and controlling.

Target Companies

Businesses that are identified as potential acquisition candidates by other companies or investors.

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