Choco Sweet Inc

question 45

Multiple Choice

Choco Sweet Inc.gives you the following information: The standard labor time of 0.75 labor hour is required to produce one unit.The standard labor cost for a 10 pound bag of chocolate is $8 per labor hour.The following is data relating to the actual cost and usage data.

-Using the above information provided for Choco Sweet,compute the direct labor efficiency variance for Choco Sweet.

• A)$8,500 (
• B)$2,500 (
• C)$11,000 (
• D)$1,375 (

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Definitions:

Revaluation Surplus

An increase in the value of an asset that is reflected on the company's balance sheet when the asset is revalued to its current market value, leading to an appreciation in the asset's worth that is not realized through sales.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the IASB that aims at making global financial statements more comparable.

Statement of Financial Position

Another term for the balance sheet, detailing a company's assets, liabilities, and equity at a specific point in time.

IFRS

Global accounting guidelines known as International Financial Reporting Standards are used for the preparation of financial statements.