Galla Corporation Makes a Product with the Following Standard Costs

question 52

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 rate variance for June is:

• A)$800 U
• B)$784 U
• C)$800 F
• D)$784 F

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Definitions:

Political Ideas

Concepts and beliefs regarding governance, political ethics, the rights and duties of citizens, and the ideal form of political organization.

Versailles Treaty

The treaty signed at the Versailles peace conference after World War Ⅰ, which established President Woodrow Wilson’s vision of an international regulating body, redrew parts of Europe and the Middle East, and assigned economically crippling war reparations to Germany, but failed to incorporate all of Wilson’s Fourteen Points.

Liberal Internationalism

A foreign policy doctrine that argues for the spread of democracy and open markets, often associated with Woodrow Wilson's presidency.

Federal Government

The national government of a federation, which holds the authority to govern issues that affect the entire country, distinct from state or local governments.