Galla Corporation Makes a Product with the Following Standard Costs

question 99

Multiple Choice

Galla Corporation makes a product with the following standard costs:


The company budgeted for production of 2,400 units in June, but actual production was 2,500 units. The company used 19,850 pounds of direct material and 980 direct labor-hours to produce this output. The company purchased 21,700 pounds of the direct material at $6.70 per pound. The actual direct labor rate was $19.20 per hour and the actual variable overhead rate was $1.80 per hour.

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

-The labor efficiency variance for June is:

• A)$384 F
• B)$400 U
• C)$400 F
• D)$384 U

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Definitions:

Components

The distinct parts or elements that make up a whole system, device, or piece of software.

Need for Affiliation

A person's desire to build and maintain close, warm, and interpersonal relationships.

Approval

The act of accepting or consenting to something, often an idea, plan, or action.

Conflict

A situation or process in which there is a disagreement, opposition, or clash between two or more parties.