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:

Top Executives

Individuals who occupy the highest-ranking positions in an organization, responsible for strategizing and overseeing operations.

Store Operations

The activities and tasks involved in managing a retail store effectively, including staffing, inventory management, and customer service.

Centralized

The concentration of control or authority in a single organization or location, often in the context of decision-making processes.

Hierarchy Of Authority

An organizational structure where different levels of power and responsibility determine how decisions are made and tasks are assigned.