A Company Uses the Following Standard Costs to Produce a Single

question 117

Multiple Choice

A company uses the following standard costs to produce a single unit of output. During the latest month, the company purchased and used 58,000 pounds of direct materials at a price of $1.00 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $56,350 based on 4,900 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $15,000 and fixed manufacturing overhead incurred was $10,400. Based on this information, the total direct labor cost variance for the month was:

• A) $3,650 favorable
• B) $2,450 favorable
• C) $1,200 unfavorable
• D) $1,200 favorable
• E) $2,450 unfavorable

Understand the concept of natural monopoly and its causes.

Recognize the differences in market power and pricing strategies between perfectly competitive firms and monopolies.

Understand the geographic focus and sociopolitical base of the Progressive movement.

Recognize the impact of urbanization and industrialization on the American landscape and society during the Progressive era.

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Definitions:

Overapplied Manufacturing Overhead

A scenario in which the assigned costs for manufacturing overhead are greater than the overhead expenses actually encountered.

Cost of Goods Sold

This is the direct costs attributable to the production of the goods sold in a company, including both materials and labor costs.

Adjusted Cost

The cost that has been modified for adjustments like discounts, returns, or additional charges to reflect the true cost of purchase or production.

Cost of Goods Sold

Costs directly linked to the manufacturing of goods a business sells, covering both the cost of materials and labor.