Pikus Corporation Makes a Product That Has the Following Direct

question 153

Multiple Choice

Pikus Corporation makes a product that has the following direct labor standards: In January the company's budgeted production was 3,400 units, but the actual production was 3,500 units. The company used 640 direct labor-hours to produce this output. The actual direct labor cost was $8,960.
-The labor efficiency variance for January is:

• A)$840 U
• B)$900 U
• C)$840 F
• D)$900 F

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Definitions:

Federal Funds

Funds in a bank’s reserve account at the Federal Reserve Bank.

SEC Registration

The process by which securities are registered with the Securities and Exchange Commission, a requirement for securities to be legally sold to the public in the United States.

Commercial Paper

An unsecured, short-term debt instrument issued by a corporation, typically for financing short-term liabilities, with maturities ranging from a few days to 270 days.