Snuggs Corporation Makes a Product with the Following Standard Costs

question 171

Multiple Choice

Snuggs Corporation makes a product with the following standard costs: The company reported the following results concerning this product in October. 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 October is:

• A)$495 U
• B)$495 F
• C)$525 U
• D)$525 F

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Definitions:

General Adaptation Syndrome

A three-phase response pattern to chronic stress, including alarm, resistance, and exhaustion stages, as identified by Hans Selye.

Adrenaline

A hormone and neurotransmitter released in response to stress, increasing heart rate, blood flow, and providing a boost of energy or "fight or flight" response.

Noradrenaline

A neurotransmitter and hormone involved in the body's response to stress, increasing heart rate, blood pressure, and blood sugar levels.

Approach-Approach Conflicts

A type of decision-making conflict involving a choice between two desirable outcomes.