The Thompson Company Uses Standard Costing and Has Established the Following

question 55

Multiple Choice

The Thompson Company uses standard costing and has established the following direct material and direct labor standards for each unit of Lept.

Direct materials: 2 gallons at $4 per gallon
Direct labor: 0.5 hours at $8 per hour

During September, the company made 6,000 Lepts and incurred the following costs:

Direct materials purchased: 13,400 gallons at $4.10 per gallon
Direct materials used: 12,600 gallons
Direct labor used: 2,800 hours at $7.65 per hour
-The labor rate variance for September was:

• A)$1,530 unfavorable
• B)$980 favorable
• C)$280 favorable
• D)$980 unfavorable

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Definitions:

Gemeinschaft Society

Gemeinschaft Society refers to traditional societies characterized by close personal relationships, strong family ties, and a sense of community, as opposed to more impersonal and individualistic societies.

Collective Consciousness

A set of shared beliefs, ideas, and moral attitudes which operate as a unifying force within society, originally conceptualized by Émile Durkheim.

Social Solidarity

The sense of unity and mutual support within a society, which binds individuals together and facilitates cooperation and harmonious coexistence.

Social Differentiation

The process by which a society becomes increasingly complex through the development of specialized social roles and institutions.