The Clark Company Makes a Single Product and Uses Standard

question 153

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 variable overhead for May?

• A) $40,000.
• B) $50,000.
• C) $56,000.
• D) $60,000.

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Audiometer

An instrument used to assess hearing acuity by generating tones of specific frequencies and intensities.

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Abbreviation for Ear, Nose, and Throat, a medical specialty focusing on disorders of these regions.

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A unit of measurement for the intensity of sound, denoting relative loudness.

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