Welch Company Budgeted the Following Cost Standards for the Current

question 97

Multiple Choice

Welch Company budgeted the following cost standards for the current year: Direct materials = 1.40 kilos per unit @ $1.50 per kilo
Direct labor = 0.75 hours per unit @ $6 per hour
Actual production and costs were as follows:
Units produced = 2,800
Direct materials used = 4,500 kg.
Direct materials purchased = 5,000 kg. @ a cost of $5,850
Direct labor incurred = 2,000 hours at a cost of $13,000
The labor price variance was

• A) $600 F
• B) $400 U
• C) $4,800 F
• D) $1,000 U

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Definitions:

Seafloor Spreading

The process by which new oceanic crust is formed at mid-ocean ridges and moves away from the ridge, contributing to continental drift.

Subduction

When tectonic plates converge, the movement of one plate beneath another into the mantle is referred to as subduction.

Continental Margins

The zones of the ocean floor that separate the thin oceanic crust from thick continental crust, including the continental shelf, slope, and rise.

Seafloor Spreading

The formation of new oceanic crust at mid-ocean ridges and its gradual movement away from the ridge.