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

---

Definitions:

Firm Grip

A strong and secure hold or grasp on an object or concept.

Speaking Voice

The characteristic sound produced by someone when speaking, influenced by tone, pitch, and volume.

Moderate Pace

A speed or level of activity that is neither too fast nor too slow, often considered sustainable and comfortable for long durations.