The Apoundright Company Uses Standard Costing and Has Established the Following

question 132

Multiple Choice

The Apoundright Company uses standard costing and has established the following standards for its single product:
Direct materials: 2 gallons at $3 per gallon
Direct labor: 0.5 hours at $8 per hour
Variable overhead: 0.5 hours at $2 per hour
During November, the company made 4,000 units and incurred the following costs:
Direct materials purchased: 8,100 gallons at $3.10 per gallon
Direct materials used: 7,600 gallons
Direct labor used: 2,200 hours at $8.25 per hour
Actual variable overhead: $4,175
The company applies variable overhead to products on the basis of standard direct labor-hours.
-The labor efficiency variance for November was:

• A) $1,050 U
• B) $550 U
• C) $1,600 F
• D) $1,600 U

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Definitions:

Apple Juice

A beverage made by pressing and extracting the liquid from apples.

Orange Juice

A beverage made by extracting the liquid from oranges, often consumed for its nutritional value and taste.

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are decorative edgings for pictures, such as photographs or paintings, intended to enhance their appearance, make them easier to display, and protect them.

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The willingness and ability of consumers to purchase a specific quantity of goods or services at various prices during a certain time period.