The Russell Company Provides the Following Standard Cost Data Per

question 103

Multiple Choice

The Russell Company provides the following standard cost data per unit of product: During the period, the company produced and sold 22,000 units incurring the following costs:
The direct labor price variance was:
$\begin{array} {| l|l| }\hline\text { Direct material ( } 3 \text { gallons }(a) \$ 6 \text { per gallon) }&\$18.00\\\hline\text { Direct labor ( } 2 \text { hours (a) } \$ 10 \text { per hour) }&\$20.00\\\hline\end{array}$
$\begin{array} {| l|l| }\hline \text { Direct material}&68,000 \text { gallons } @ \$ 5.90 \text { per gallon }\\\hline\text { Direct labor }&45,500 \text { hours } a \$ 9.75 \text { per hour }\\\hline\end{array}$

• A)$11,000 unfavorable.
• B)$11,000 favorable.
• C)$11,375 unfavorable.
• D)$11,375 favorable.

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Definitions:

Corporate City

A city significantly influenced by or structured around the presence and interests of large corporations, often with implications for urban planning and governance.

Capital Accumulation

The growth of wealth or assets by a company or individual, often used to describe the increase in capital goods necessary to improve production.

Thomas Robert Malthus

An English cleric and scholar, known for his theories on population growth and its implications for society.

Population Control

Measures or policies implemented to control or regulate the growth rate of a population to ensure sustainability.