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:

Humanistic

A psychological perspective emphasizing individual potential for growth and the importance of human values, empathy, and the pursuit of meaning.

Rogers

Refers to Carl Rogers, an influential American psychologist and among the founders of the humanistic approach to psychology, best known for creating client-centered therapy.

Psychologists

Professionals specialized in the study of the mind and behavior, often working in areas such as clinical practice, research, education, and consultancy.

Inborn Potential

The natural abilities or capacities that an individual is born with, which can be developed or realized through experience and learning.