The Odle Company Makes and Sells a Single Product Called

question 31

Multiple Choice

The Odle Company makes and sells a single product called a Kitt. Odle uses a standard costing system. Each Kitt has a standard cost of 5 pounds of material at $12 per pound and 0.9 direct labor-hours at $15 per hour. There were no inventories of any kind on June 1. During June, the following events occurred:

• Purchased 17,000 pounds of material at a total cost of $190,000.
• Used 15,000 pounds of material to produce 2,400 Kitts.
• Used 1,900 hours of direct labor time at a total cost of $38,000.
-To record the incurrence of direct labor cost and its use in production,the general ledger would include what kind of entry to the Labor Efficiency Variance account?

• A)$7,500 credit
• B)$5,600 debit
• C)$5,600 credit
• D)$3,900 credit

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Definitions:

SELL Sequence

A structured approach in sales that typically includes steps such as Show features, Explain advantages, Lead into benefits, and Let the customer talk.

Business Proposition

An offer or plan proposed by a business to provide certain products or services with the aim of generating value or profit.

Marketing Plan

A comprehensive document outlining a company's strategy for promoting and selling its products or services to its target market.

Trial Close

A sales technique where the seller presents a part of the closing process to gauge the buyer's readiness to make a purchase.