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.

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Definitions:

Salespeople

Individuals who are responsible for selling products or services to customers, focusing on meeting the customers' needs and closing sales.

KISS Rule

A design principle stating "Keep It Simple, Stupid", emphasizing the importance of simplicity in products and systems.

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Individuals specializing in the sale and promotion of products or services, often employing various techniques to meet sales targets.

Evaluative Listening

A listening style where the listener analyzes or judges the content of a message, often assessing its truthfulness, usefulness, or relevance.