The Violet Company Makes Mugs for Which the Following Standards

question 142

Multiple Choice

The Violet Company makes mugs for which the following standards have been developed: Production of 400 mugs was expected in July,but 440 mugs were actually completed.Direct materials purchased and used were 2,100 ounces at an actual price of $2.30 per ounce.Direct labor cost for the month was $5,310,and the actual pay per hour was $9.00.What is the direct labor quantity variance for July?

• A)$560 Favorable
• B)$560 Unfavorable
• C)$630 Favorable
• D)$630 Unfavorable

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Definitions:

Common Shares

Equity securities representing ownership interests in a corporation, providing voting rights and entitling shareholders to a share of the company's profits via dividends.

Share Capital

The total amount of funds raised by a company through the issuance of shares to shareholders, representing ownership in the company.

Retained Earnings

The portion of a company's profit that is kept or retained within the company, not distributed to shareholders as dividends.

Market Value

The present cost at which a service or asset is available for purchase or sale in the market.