Baldwin, Inc Uses a Standard Job Cost System and Purchased

question 73

Multiple Choice

Baldwin, Inc uses a standard job cost system and purchased 25,000 kg of material at $6 per kg, and used it all. The standard amount allowed for the output achieved is 22,500 kg, and the standard price is $6.50 per kg. The company also incurred 37,500 direct labour hours for $450,000. The standard hourly price was $11 per hour, and 39,000 hours were allowed at standard. Assuming all variances are immaterial, answer the following questions:
The entry to record the direct material efficiency variance will include a;

• A) Debit to work in process inventory for $146,250
• B) Credit to the efficiency variance for $16,250
• C) Credit to the efficiency variance for $12,500
• D) Credit to materials inventory for $150,000

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Definitions:

Occupational Success

The achievements and progress a person makes in their career, often measured by advancements, salary increases, recognition, and fulfillment in their job.

Conscientious

A personality trait characterized by organization, dependability, discipline, and a strong sense of duty.

Dark Triad

A psychological term referring to the constellation of three personality traits: narcissism, Machiavellianism, and psychopathy.

Machiavellianism

A personality trait characterized by manipulativeness, a cynical view of human nature, and a focus on self-interest and deception.