Sande Corporation Makes a Product with the Following Standard Costs

question 141

Multiple Choice

Sande Corporation makes a product with the following standard costs: In November the company's budgeted production was 2,900 units but the actual production was 3,000 units. The company used 27,670 grams of the direct material and 1,390 direct labor-hours to produce this output. During the month, the company purchased 31,700 grams of the direct material at a cost of $196,540. The actual direct labor cost was $29,607 and the actual variable overhead cost was $2,502.

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 November is:

• A)$2,363 U
• B)$2,550 F
• C)$2,550 U
• D)$2,363 F

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Definitions:

Ambiguous

Something that can be understood in more than one way or is unclear due to having multiple interpretations.

Concentrating

The mental process of focusing one's attention or thoughts on a specific object or activity.

High Self-esteem

A positive evaluation of oneself, characterized by feelings of respect, confidence, and worthiness.

Extraverted

Describing a personality trait characterized by outgoingness, sociability, and a high level of engagement with the external world.