Biery Corporation Makes a Product with the Following Standard Costs

question 316

Multiple Choice

Biery Corporation makes a product with the following standard costs: The company produced 4,100 units in April using 5,380 liters of direct material and 2,610 direct labor-hours. During the month, the company purchased 6,000 liters of the direct material at $5.80 per liter. The actual direct labor rate was $19.80 per hour and the actual variable overhead rate was $2.90 per hour. 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 rate variance for April is:

• A)$1,968 F
• B)$2,088 F
• C)$2,088 U
• D)$1,968 U

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Definitions:

Core Values

Core values are the fundamental beliefs and guiding principles that dictate behavior and can help people understand the difference between right and wrong within an organization or individual's ethical framework.

Beliefs

Personal convictions or acceptances that something is true or exists, often based on cultural, educational, or personal experiences.

Culture

A set of shared attitudes, values, goals, and practices that characterizes an institution, organization, or group.

Mechanisms

Fundamental processes or structures through which systems operate or produce effects.