Eliezrie Corporation Makes a Product with the Following Standard Costs

question 164

Multiple Choice

Eliezrie Corporation makes a product with the following standard costs: In January the company's budgeted production was 7, 400 units but the actual production was 7, 500 units.The company used 45, 580 kilos of the direct material and 2, 030 direct labor-hours to produce this output.During the month, the company purchased 48, 500 kilos of the direct material at a cost of $53, 350.The actual direct labor cost was $18, 473 and the actual variable overhead cost was $7, 714. 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 January is:

• A)$2, 025 U
• B)$1, 827 U
• C)$1, 827 F
• D)$2, 025 F

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Definitions:

Depression

An emotional well-being issue defined by consistently low spirits or a disinterest in usual activities, which seriously affects daily living.

Amnesia

Amnesia is a loss of memory due to brain injury, disease, or psychological trauma, affecting the ability to recall past events.

Obsessive Compulsive Disorder (OCD)

A mental disorder characterized by intrusive thoughts (obsessions) that produce uneasiness and repetitive behaviors (compulsions) aimed at reducing these thoughts.

Post-Traumatic Stress Disorder (PTSD)

A psychological disorder caused by either undergoing or observing a distressing incident, identified by involuntary memories, bad dreams, and intense worry.