Jackson Industries Uses a Standard Cost System in Which Direct

question 42

Multiple Choice

Jackson Industries uses a standard cost system in which direct materials inventory is carried at standard cost. Jackson has established the following standards for one unit of product.

During May, Jackson purchased 125,000 pounds of direct material at a total cost of $475,000. The total factory wages for May were $364,000, 90 percent of which were for direct labor. Jackson manufactured 22,000 units of product during May using 108,000 pounds of direct material and 28,000 direct labor-hours.
-The labor rate variance for May is:

• A)$8,400 Favorable
• B)$7,200 Unfavorable
• C)$8,400 Unfavorable
• D)$6,000 Favorable

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Definitions:

Primary Reinforcers

Innate reinforcing qualities, such as food and water, that satisfy biological needs and do not require learning to become effective.

Radical Behaviorists

Proponents of a branch of psychology that emphasizes the study of observable behavior and the environmental factors that influence it, often minimizing or ignoring internal states like thoughts and feelings.

Internal States

Psychological and physiological conditions that exist within an individual, such as emotions, moods, desires, and health status.

Physical Punishment

The use of physical force with the intention of causing a person to experience pain, but not injury, for the purpose of correction or control.