The Dexon Company Makes and Sells a Single Product Called

question 38

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 costs and its use in production, the general ledger would include what entry to the Labor Efficiency Variance account?

• A) $480 credit
• B) $240 debit
• C) $1,200 debit
• D) $1,200 credit

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Definitions:

Host Country

The nation where a company operates branches or subsidiaries outside of its home country or where international events take place.

Across Cultures Competency

The capability to effectively understand, communicate, and interact with people from different cultural backgrounds.

Ongoing Communications

Continuous and consistent exchange of information, both formal and informal, among members of an organization or team.

Active Questioning

The practice of intentionally asking questions to elicit information, encourage deep thinking, or guide a conversation in a productive direction.