Eliezrie Corporation Makes a Product with the Following Standard Costs

question 36

Multiple Choice

Eliezrie Corporation makes a product with the following standard costs:

In January the company's budgeted production was 7,400 units but the actual production was 7,500 units. The company used 45,580 kilos of the direct material and 2,030 direct labor-hours to produce this output. During the month, the company purchased 48,500 kilos of the direct material at a cost of $53,350. The actual direct labor cost was $18,473 and the actual variable overhead cost was $7,714.

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 rate variance for January is:

• A)$2,025 U
• B)$1,827 U
• C)$1,827 F
• D)$2,025 F

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Definitions:

Tolerance

The process by which the body becomes less responsive to a substance (such as a drug) or a stimulus after repeated exposure.

Addictive Disorder

A psychological disorder characterized by a dependency on substances such as alcohol, drugs, or behaviors like gambling, leading to significant impairment or distress.

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, a diagnostic tool published by the American Psychiatric Association that defines and classifies mental disorders.

Withdrawal Reactions

Symptoms that arise when discontinuing or reducing the intake of a substance that one has become dependent on.