Gentile Corporation Makes a Product with the Following Standard Costs

question 145

Multiple Choice

Gentile Corporation makes a product with the following standard costs: The company produced 6,000 units in May using 36,970 kilos of direct material and 4,340 direct labor-hours. During the month, the company purchased 40,400 kilos of the direct material at $4.70 per kilo. The actual direct labor rate was $13.70 per hour and the actual variable overhead rate was $2.70 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 efficiency variance for May is:

• A)$6,302 U
• B)$6,440 U
• C)$6,440 F
• D)$6,302 F

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Definitions:

Georg Hegel

A German philosopher best known for his contributions to dialectical idealism, emphasizing the process of thesis, antithesis, and synthesis in understanding development.

Newspaper

A printed or digital publication that provides news, articles, features, and advertisements, typically published daily or weekly.

Mass Media

Forms of communication, such as television, newspapers, and the internet, that reach large audiences.

Economic Needs

Essential requirements for an individual or society to maintain a minimum standard of living, including food, shelter, clothing, and healthcare.