Flexer Company Ltd Has Set the Following Standards for the Production

question 68

Multiple Choice

Flexer Company Ltd has set the following standards for the production of one unit of product. Normal production each month is 500 units.
During June, actual production amounted to 420 units. All direct material was purchased and used this month. Actual cost amounted to:
Determine the direct labour rate variance for June production.

• A) $280 (
• B) $172 (
• C) $200 (
• D) $168 (

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Definitions:

Technological Superiority

Having more advanced and efficient technology compared to competitors, often leading to a competitive advantage.

Economies Of Scale

Cost advantages that enterprises obtain due to their scale of operation, leading to cost per unit of output decreasing with increasing scale.

ATC

ATC, or Average Total Cost, is the total cost divided by the number of goods produced, reflecting the average cost of production per unit.

Economic Profit

The earnings excess over the summation of a firm's clear and hidden financial outlays, showcasing its comprehensive income versus expenses.