The Standard Costs and Actual Costs for Direct Materials, Direct

question 73

Multiple Choice

The standard costs and actual costs for direct materials, direct labor, and factory overhead for the manufacture of 2,500 units of product are as follows: The amount of the direct labor time variance is:

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

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Definitions:

Cold Front

A leading edge of a cooler mass of air, replacing (at ground level) a warmer mass of air, which can lead to dramatic changes in weather conditions.

Rain Shadow Effect

A climatic phenomenon where a mountain range causes precipitation on one side, creating a dry area on the leeward side due to the blocking of rain-producing weather systems.

Tornadoes

are violently rotating columns of air that are in contact with both the surface of the Earth and a cumulonimbus cloud or, in rare cases, the base of a cumulus cloud, known for causing significant destruction.

Per Annum

A Latin term meaning "per year," used to describe a rate or amount measured over the course of a year.