Answer Corporation Uses Standard Cost System Variable Cost @ $2 Per Hour
Total Variable Cost, $18,000

question 117

Multiple Choice

Answer Corporation uses standard cost system. 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: $\begin{array}{ll}\text { StandardCosts } \\ 2,500 \text { kilograms@\$8 }& \text { Direct labor } \\7,500 \text { hours @ } \$ 12 & \text { Direct material } \\\\\text { Actual Costs } & \\2,600 \text { kilograms } @ \$ 8.75 & \text { Direct material } \\7,400 \text { hours } \$ 11.40 & \text { Direct labor } \\\text { Factory overhead(100\% capacity- } 10,000 \text { hrs.) : } &\end{array}$
Variable cost @ $2 per hour
Total variable cost, $18,000
Fixed cost @ $0.80 per hour
Total fixed cost, $8,000
Refer to the information provided for Answer Corporation. The amount of the direct labor time variance is:

• A) $1,200 favorable.
• B) $1,140 unfavorable.
• C) $1,200 unfavorable.
• D) $1,140 favorable.

---

Definitions:

Bleach Solution

A dilute mixture of water and bleach used as a disinfectant to kill germs and sanitize surfaces.

Nasotracheal Suctioning

A procedure to remove mucus and secretions from the trachea and nasopharynx through a suction catheter.

Intermittent Suctioning

A procedure used in respiratory care where suction is applied at intervals to clear airways, as opposed to continuous suction.

Suction Catheter

A tube used to remove fluids from the body by suction, commonly used in medical settings.