Cox Engineering Performs Cement Core Tests in Its Laboratory

question 129

Multiple Choice

Cox Engineering performs cement core tests in its laboratory. The following standards have been set for each core test performed: During March, the laboratory performed 2,000 core tests. On March 1 no direct materials (sand) were on hand. Variable manufacturing overhead is assigned to core tests on the basis of standard direct labor-hours. The following events occurred during March:

• 8,600 pounds of sand were purchased at a cost of $7,310.
• 7,200 pounds of sand were used for core tests.
• 840 actual direct labor-hours were worked at a cost of $8,610.
• Actual variable manufacturing overhead incurred was $3,200.
-The labor rate variance for March is:

• A)$4,578 unfavorable
• B)$1,470 unfavorable
• C)$4,578 favorable
• D)$1,470 favorable

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Definitions:

Inbound Telemarketing

A marketing approach where a company receives calls from interested customers or potential leads, often as a result of advertising or promotional activities.

Catalog Phone Banks

Call centers dedicated to handling orders and inquiries for products listed in catalogs, providing customer service and sales support.

Inside Order Takers

Employees within a company who manage orders from customers or clients, typically working from an office rather than the field.

Outside Order Takers

Outside order takers are sales personnel who visit customers or potential clients in their place of business or residence to take orders directly.