Efficient Corporation Uses a Standard Cost System

question 7

Multiple Choice

Efficient Corporation uses a standard cost system.The following information was provided for the period that just ended:

-The direct labor rate variance is

• A)$135,000 unfavorable.
• B)$89,100 favorable.
• C)$89,100 unfavorable.
• D)$121,500 unfavorable.

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Definitions:

Corporate Veil

A legal concept that separates the personality of a corporation from the personalities of its shareholders, and protects them from being personally liable for the company's debts and other obligations.

Corporate Privilege

A legal principle that allows corporations to withhold certain confidential communications from disclosure, often relating to legal advice.

Directors

Members of a company's board responsible for making strategic decisions, overseeing management, and ensuring corporate governance.

Corporate Obligation

Refers to the legal and ethical responsibilities that a corporation has towards its stakeholders, including employees, customers, shareholders, and the community.