Tidd Corporation Makes a Product with the Following Standard Costs

question 104

Multiple Choice

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

• A)$10,720 U
• B)$10,720 F
• C)$10,653 U
• D)$10,653 F

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Definitions:

Source Data Processing

The handling or manipulation of raw data to prepare it for further analysis, including validation, sorting, reduction, and transformation.

MRP II

Stands for Manufacturing Resource Planning, an evolution of Material Requirements Planning (MRP) that integrates additional data, such as employee and financial needs, to support manufacturing processes.

MRP

Material Requirements Planning; a system that calculates the materials and components needed to manufacture a product.

ERP

Enterprise Resource Planning; a type of software that organizations use to manage day-to-day business activities such as accounting, procurement, project management, risk management, and supply chain operations.