The Clark Company Makes a Single Product and Uses Standard

question 112

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 was the total standard cost for direct labour for May?

• A) $120,000.
• B) $161,000.
• C) $168,000.
• D) $180,000.

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Definitions:

Nucleus Accumbens

A brain region involved in the reward circuit, associated with pleasure, reinforcement learning, addiction, and fear.

Amygdala

A section of the brain's limbic system involved in emotion, survival instincts, and memory.

Frontal Cortex

The front part of the cerebral cortex involved in decision making, problem-solving, control of purposeful behaviors, consciousness, and emotional responses.

Self-Actualization

The realization or fulfillment of one's talents and potentialities, often considered as the highest need in Maslow's hierarchy of needs.