The Dexon Company Makes and Sells a Single Product Called

question 12

Multiple Choice

The Dexon Company makes and sells a single product called a Mip and uses a standard costing system. The following standards have been established for one unit of Mip: There were no inventories of any kind on August 1. During August, the following events occurred:
Purchased 15,000 board feet at the total cost of $24,000.
Used 12,000 board feet to produce 2,100 Mips.
Used 1,700 hours of direct labor time at a total cost of $20,060.
-To record the incurrence of direct labor cost and its use in production, the general ledger would include what entry to the Labor Rate Variance account?

• A) $240 credit
• B) $240 debit
• C) $340 debit
• D) $340 credit

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Definitions:

Economic Recessions

Periods when an economy experiences a decline in gross domestic product, income, employment, and trade lasting for several months or years.

Nonprofit Organizations

Entities that operate for a collective, public or social benefit, rather than to generate profits for owners or investors.

Environmental Scanning

A process used by companies to monitor their external and internal environments to detect early signs of opportunities and threats that may influence future strategies.

Market Opportunities

Identifiable segments within a market where a company can focus its efforts to offer a product or service that meets a need, often through competitive advantage.