Java Gourmet Coffee Java Gourmet Coffee Reports the Following Data for April 2010

question 77

Multiple Choice

Java Gourmet Coffee
Java Gourmet Coffee reports the following data for April 2010 where 200,000 pounds of roasted gourmet coffee beans were actually produced (note: standard costs do not allow for any wastage) ,
Actual:

Standard:

Refer to Java Gourmet Coffee.Calculate the total direct labor variance.

• A)$11,000 F
• B)$9,000 U
• C)$20,000 U
• D)$9,500 U

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Definitions:

Finished Goods Inventory

The stock of completed products that are ready to be sold but have not yet been sold to customers.

Standard Costing System

A method of cost accounting that involves assigning expected costs to production and then analyzing any variances between those expected costs and actual costs incurred.

Work in Process Inventory

Goods that are in the process of being manufactured but are not yet complete.

Finished Goods Inventory

The stock of completed products that are ready to be sold but have not yet been purchased by customers.