The Collins Corporation Uses Standard Costing and Has Established the Following

question 40

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 rate variance for July was:

• A)$3,920 Unfavorable
• B)$6,120 Unfavorable
• C)$1,120 Favorable
• D)$3,920 Favorable

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Definitions:

Group Judgments

The phenomenon where the collective opinion or decision of a group is influenced by factors such as group dynamics, social pressure, and consensus-seeking behaviors.

Observational Learning

Learning that occurs through observing the behavior of others and the outcomes of those behaviors, without direct experience.

Gender-Typing

The process by which individuals learn to conform to societal expectations and norms regarding gender roles and behaviors.

Social Cognition

The area of study focusing on how people process, store, and apply information about other people and social situations.