The Collins Corporation Uses Standard Costing and Has Established the Following

question 144

Multiple Choice

The Collins Corporation uses standard costing and has established the following direct material and direct labor standards for each unit of the single product it makes: • Direct materials: 4 gallons at $8 per gallon
• Direct labor: 1 hour at $16 per hour
During July, the company made 6,000 units of product and incurred the following costs:
• Direct materials purchased: 26,800 gallons at $8.20 per gallon
• Direct materials used: 25,200 gallons
• Direct labor used: 5,600 hours at $15.30 per hour
The direct materials purchases variance is computed when the materials are purchased.
The labor efficiency variance for July was:

• A)$6,400 Favorable
• B)$89,600 Favorable
• C)$10,320 Favorable
• D)$6,120 Favorable

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Definitions:

Marketspace Opportunity

Prospects for business growth and development within online or digital marketplaces, driven by changing consumer behaviors and technological advancements.

Communication Capabilities

The range of technologies, platforms, and methodologies available to individuals or organizations to convey information effectively.

Marketspace Opportunity

Potential for growth and profit in the digital or online marketplace.

Price Utility

The perceived value or satisfaction a consumer derives from purchasing a product at a given price.