Kibodeaux Corporation Makes a Product with the Following Standard Costs

question 45

Multiple Choice

Kibodeaux Corporation makes a product with the following standard costs: The company budgeted for production of 3,300 units in June, but actual production was 3,400 units. The company used 33,240 liters of direct material and 320 direct labor-hours to produce this output. The company purchased 35,900 liters of the direct material at $4.90 per liter. The actual direct labor rate was $22.70 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 June is:

• A)$454 F
• B)$454 U
• C)$440 F
• D)$440 U

---

Definitions:

Cochlea

A coiled, bony, fluid-filled tube in the inner ear; sound waves traveling through the cochlear fluid trigger nerve impulses.

Hammer, Anvil, Stirrup

The three smallest bones in the human body, located in the middle ear, that play a key role in transmitting sound vibrations to the inner ear.

Cochlea

A spiral-shaped cavity in the inner ear that plays a key role in hearing by converting sound vibrations into nerve impulses.

Fluid-Filled Tube

A tube that contains fluid, often found in biological systems and mechanical devices, used for various functions such as cushioning or transport.