Ciubal Corporation Has Provided the Following Data Concerning Its Direct

question 25

Multiple Choice

Ciubal Corporation has provided the following data concerning its direct labor costs for December: The Labor Rate Variance for December would be recorded as a:

• A)credit of $19,440.
• B)credit of $21,168.
• C)debit of $19,440.
• D)debit of $21,168.

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Definitions:

Raw Materials Inventory

The total cost of all the components needed to manufacture a product that a company has in stock.

Cost of Direct Materials

Refers to the total cost of raw materials that are directly used in the production of goods.

Factory Depreciation

The process of allocating the cost of a physical factory plant and its equipment over its useful life, reflecting wear and tear over time.

Total Raw Materials

The sum of all raw materials that are available for use in the production process, including both those already in process and those in stock waiting to be used.