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

question 122

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 rate variance is:

• A) $4,440 unfavorable.
• B) $4,500 favorable.
• C) $4,440 favorable.
• D) $4,500 unfavorable.

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Definitions:

Decibel

A unit of measurement used to express the intensity of sound, with each ten-decibel increase representing a tenfold increase in sound intensity.

Snail-Shaped Tube

Refers to the cochlea in the inner ear, which plays a key role in the process of hearing by converting sound waves into neural signals.

Vestibular Sacs

Part of the inner ear involved in balance, specifically in detecting changes in the position of the head with respect to gravity.

Semicircular Canals

Structures within the inner ear that are key components of the vestibular system, helping to maintain balance by responding to rotational movements.