Kokko Company Makes a Product That Is Expected to Require

question 101

Multiple Choice

Kokko Company makes a product that is expected to require 2 hours of labor per unit of product.The standard cost of labor is $6.00.Kokko actually used 2.1 hours of labor per unit of product.The actual cost of labor was $6.25 per hour.Kokko made 1,100 units of product during the period.Based on this information alone,the labor usage variance is:

• A) $190 favorable.
• B) $660 unfavorable.
• C) $600 favorable.
• D) $660 favorable.

---

Definitions:

State and Federal Jurisdiction

The legal authority granted to state and federal courts over certain types of cases based on geographical area and subject matter.

Subject-matter Jurisdiction

The capability of a court to handle particular types of legal cases or those pertaining to specific areas of interest.

Personal Jurisdiction

The authority of a court over the parties involved in a lawsuit, permitting it to make decisions affecting their rights.

Long-arm Statute

A law that allows for the jurisdiction of a court to extend beyond its traditional geographic boundaries to parties based on their activities with the state.