The Standard Costs and Actual Costs for Direct Labor in the Manufacture

question 93

Multiple Choice

The standard costs and actual costs for direct labor in the manufacture of 2,500 units of product are as follows: ​
The direct labor time variance is

• A) $1,180 favorable
• B) $1,140 unfavorable
• C) $1,180 unfavorable
• D) $1,140 favorable

Analyze the effects of consigned goods on inventory accounts.

Understand how merchandise returns from customers are recorded in accounting.

Comprehend the components that constitute the cost of merchandise inventory.

Grasp the accounting procedures in a perpetual inventory system, including how merchandise returns to suppliers are handled.

---

Definitions:

Maturation

The process of reaching full development or the final stage of development, often used in contexts such as biology, chemistry, or finance.

Current Yield

A financial term describing the annual return on an investment, such as a bond, based on the investment's current market price.

Bonds

Fixed income investments representing loans made by an investor to a borrower, typically corporate or governmental.

Maturation

The process by which an investment reaches its full value or final due date.