The Following Information Summarizes the Standard Cost for Producing One

question 142

Multiple Choice

The following information summarizes the standard cost for producing one metal tennis racket frame at Spaulding Industries.In addition,the variances for one month's production are given.Assume that all inventory accounts have zero balances at the beginning of the month. $$\begin{array}{l}\begin{array} { | l | l | } \hline \text { Variances: }\\\hline \text { Material price } & 244.75 \text { unfavorable } \\\hline \text { Material quantity } & 500.00 \text { unfavorable } \\\hline \text { Labor rate } & 520.00 \text { favorable } \\\hline \text { Labor efficiency } & 2,080.00 \text { unfavorable } \\\hline\end{array}\end{array}$$ What was the actual price paid for the direct material during the month,assuming all materials purchased were put into production?

• A) $4.34.
• B) $4.22.
• C) $4.11.
• D) $4.00.

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Definitions:

Skill Level

The degree of competence or expertise required to perform a job effectively, often determined by education, training, and experience.

Total Compensation Costs

The complete range of costs incurred by an employer to provide wages, salaries, and all other employee benefits and perks.

Employee Benefits

Various types of non-wage compensation provided to employees in addition to their normal salaries or wages.

Pay Package

The total compensation provided to an employee, including salary, bonuses, benefits, and any other financial rewards.