A Company Uses the Following Standard Costs to Produce a Single

question 158

Multiple Choice

A company uses the following standard costs to produce a single unit of output. During the latest month, the company purchased and used 58,000 pounds of direct materials at a price of $1.00 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $56,350 based on 4,900 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $15,000 and fixed manufacturing overhead incurred was $10,400. Based on this information, the direct labor rate variance for the month was:

• A) $1,200 favorable
• B) $3,650 favorable
• C) $2,450 favorable
• D) $3,650 unfavorable
• E) $1,200 unfavorable

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Definitions:

Epithelial Cell

Cells covering the outside of the body and lining organs and cavities within the body, serving as a barrier and interface for substance exchange.

Muscle Cell

A cell that makes up the muscle tissue, characterized by its ability to contract, thus producing movement.

Neuron

A specialized cell transmitting nerve impulses; a nerve cell.

Fibrocartilage

A tough, dense type of cartilage that provides substantial support and withstands heavy pressure.