Galla Corporation Makes a Product with the Following Standard Costs

question 82

Multiple Choice

Galla Corporation makes a product with the following standard costs: The company budgeted for production of 2,400 units in June, but actual production was 2,500 units. The company used 19,850 pounds of direct material and 980 direct labor-hours to produce this output. The company purchased 21,700 pounds of the direct material at $6.70 per pound. The actual direct labor rate was $19.20 per hour and the actual variable overhead rate was $1.80 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 June is:

• A)$800 U
• B)$784 U
• C)$800 F
• D)$784 F

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Definitions:

Intent

The state of mind directing a person's actions towards a specific objective or goal, especially relevant in determining the legal implications of those actions.

Defamation

A false statement presented as fact that causes injury to the reputation of a person or entity, categorized into slander (spoken) and libel (written).

Privileged Speech

Speech that is protected from legal action, often within specific contexts like parliamentary proceedings or legal advice between a client and their attorney.

Intentional Infliction

A tort action for engaging in extreme and outrageous conduct that intentionally or recklessly causes severe emotional distress to another.