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:

Level of Significance

The threshold used in statistical testing to determine whether the observed data is sufficiently inconsistent with the null hypothesis, commonly reported as a p-value.

Blood Type

A classification of blood based on the presence or absence of inherited antigenic substances on the surface of red blood cells.

Gender

Socially constructed roles, behaviors, expressions, and identities of girls, women, boys, men, and gender-diverse people.

Association

A relationship or linkage between two or more variables, where changes in one variable might be related to changes in another.