Paw-Paw Products Paw-Paw Products Produces and Sells Flannel Covered Dogbeds

question 69

Multiple Choice

Paw-Paw Products Paw-Paw Products produces and sells flannel covered dogbeds. In the current year, Paw-Paw had expected to sell 8,000 beds but actually produced and sold 8,500 beds. The following information is available regarding the standard cost to produce a single dogbed:
In the current year, 44,000 yards of material were purchased and used at a cost of $1.60 per yard and 365,500 direct labor minutes were incurred at a cost of $.23 per minute.
Refer to the Paw-Paw Products information above. The company's direct labor rate variance for the current year is:

• A) $ 2,550 F.
• B) $10,200 F.
• C) $10,965 U.
• D) $16,065 U.

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Definitions:

Drive Axle

The axle specifically responsible for transmitting power from the transmission to the wheels, propelling the vehicle forward or backward.

Truck Configurations

The specific arrangement or setup of parts and systems on a truck designed for particular purposes.

Power-Assisted Steering

A system that uses hydraulic or electric power to assist the driver in steering, reducing effort needed to turn the wheels.

Rack And Pinion

A type of linear actuator that involves a circular gear (the pinion) engaging a linear gear (the rack) to create linear motion from rotational motion.