Allan Company Manufactures Overalls -Refer to the Figure

question 71

Multiple Choice

Allan Company manufactures overalls. During the year, it manufactured 125,000 overalls, using 2.9 hours of direct labour at a rate of $6.25 per hour. The materials and labour standards for manufacturing the overalls are as follows:
Allan required 600,000 m at $1.95 per metre to make the 125,000 overalls.
$\begin{array}{lll}\text {Direct materials ( \( 5 \mathrm{~m} \) of denim \( (012 \) per metre) }&\$10\\\text { Direct labour (3 hours \( @ \$ 6 \) per hour) }&18\\\end{array}$

-Refer to the Figure.What is the entry to close the variances of labour and materials?

• A)Materials Price Variance 30,000Materials Usage Variance 50,000Labour Efficiency Variance 75,000Cost of Goods Sold 155,000Cost of Goods Sold 90,625Labour Rate Variance 90,625
• B)Materials Price Variance 31,250Materials Usage Variance 48,750Labour Efficiency Variance 78,125Cost of Goods Sold 158,125Cost of Goods Sold 93,750Labour Rate Variance 93,750
• C)Cost of Goods Sold 155,000Materials Price Variance 30,000Materials Usage Variance 50,000Labour Efficiency Variance 75,000Labour Rate Variance 90,625Cost of Goods Sold 90,625
• D)Cost of Goods Sold 158,125Materials Price Variance 31,250Materials Usage Variance 48,750Labour Efficiency Variance 78,125Labour Rate Variance 93,750Cost of Goods Sold 93,750

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Definitions:

Frequency Polygon

A graphical representation of the distribution of a dataset. It shows the frequencies of classes or intervals of data as points, which are connected by line segments.

Class Interval

A range of values used in the grouping of a set of data points in a frequency distribution.

Class Interval

A range of values in a dataset that are divided into continuous segments for the purpose of frequency distribution analysis.

Class Interval

A class interval refers to a range in data that groups values within specified upper and lower boundaries in a frequency distribution.