The Apoundright Company Uses Standard Costing and Has Established the Following

question 132

Multiple Choice

The Apoundright Company uses standard costing and has established the following standards for its single product:
Direct materials: 2 gallons at $3 per gallon
Direct labor: 0.5 hours at $8 per hour
Variable overhead: 0.5 hours at $2 per hour
During November, the company made 4,000 units and incurred the following costs:
Direct materials purchased: 8,100 gallons at $3.10 per gallon
Direct materials used: 7,600 gallons
Direct labor used: 2,200 hours at $8.25 per hour
Actual variable overhead: $4,175
The company applies variable overhead to products on the basis of standard direct labor-hours.
-The labor efficiency variance for November was:

• A) $1,050 U
• B) $550 U
• C) $1,600 F
• D) $1,600 U

Recognize the importance of the correlation between stocks in a portfolio and its effect on portfolio variance.

Identify and differentiate between systematic (market) risk and unsystematic (unique) risk and their implications for investment decisions.

Realize the implications of the slope of the security market line on market perceptions of risk and return.

Learn the process of computing expected returns based on different states of the economy and their probabilities.

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Definitions:

Tort Action

A lawsuit based on an act or omission that leads to harm or injury to another and amounts to a civil wrong for which courts impose liability.

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A vehicle's mechanism that locks the wheels to prevent it from moving, typically used when the vehicle is parked.

Recover Damages

The act of securing compensation through legal means for a loss or injury.

Igniting Fire

The process of starting a fire, whether intentionally for a purpose or accidentally.