Information Relating to Direct Labor for the Newstead Company Follow

question 21

Multiple Choice

Information relating to direct labor for the Newstead Company follow: The labor rate variance is:

• A)$2,800 unfavorable
• B)$2,700 unfavorable
• C)$4,600 unfavorable
• D)$1,800 unfavorable

Contrast the ABC system with traditional costing systems.

Compute customer margins using ABC data.

Allocate overhead costs to activity cost pools based on resource consumption.

Identify the distribution of resource consumption across activity cost pools.

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Definitions:

Social Audits

Formal procedures that identify and evaluate all company activities that relate to social issues such as conservation, employment practices, environmental protection, and philanthropy.

Ethical Awareness Stage

A phase in ethical development where individuals recognize that a situation or decision has an ethical dimension.

Code of Conduct

A set of rules outlining the responsibilities of, or proper practices for, an individual or organization.

Ethical Questions

Queries or dilemmas that involve discerning the best course of action when faced with a situation involving moral principles.