Eliezrie Corporation Makes a Product with the Following Standard Costs

question 343

Multiple Choice

Eliezrie Corporation makes a product with the following standard costs: In January the company's budgeted production was 7,400 units but the actual production was 7,500 units. The company used 45,580 kilos of the direct material and 2,030 direct labor-hours to produce this output. During the month, the company purchased 48,500 kilos of the direct material at a cost of $53,350. The actual direct labor cost was $18,473 and the actual variable overhead cost was $7,714. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
The labor efficiency variance for January is:

• A)$2,200 U
• B)$2,002 F
• C)$2,200 F
• D)$2,002 U

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Definitions:

Control Number

A numerical or alphanumeric code used to track or manage items or processes.

Facilitated Chairperson

An individual who helps guide and manage the flow of a meeting or discussion, ensuring that objectives are met efficiently.

Information Asymmetry

A situation where one party has more or better information than the other, often leading to an imbalance in a transaction or negotiation.

Sharing

The act of giving a portion of what one has to others, often seen as a gesture of generosity or a means to distribute resources equitably.