Loos Corporation uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. The direct labor standards for the company's only product specify 0.90 hours per unit at $21.50 per hour. During the year, the company started and completed 26,800 units. Direct labor employees worked 25,220 hours at an average cost of $22.50 per hour.Assume that all transactions are recorded on a worksheet as shown in the text. On the left-hand side of the equals sign in the worksheet are columns for Cash, Raw Materials, Work in Process, Finished Goods, and PP&E (net). All of the variance columns are on the right-hand-side of the equals sign along with the column for Retained Earnings.When the direct labor cost is recorded,
which of the following entries will be made?
A. $25,220 in the Labor Efficiency Variance column
B. $25,220 in the Labor Rate Variance column
C. ($25,220) in the Labor Rate Variance column
D. ($25,220) in the Labor Efficiency Variance column
Answer: C
You might also like to view...
Answer the following statements true (T) or false (F)
1. Evaluating the information being sent is known as informational listening. 2. Listening with empathy is the basis for a host of important workplace skills and strategies. 3. Asking questions does not provide support to a speaker. 4. Action-oriented listeners prefer brief communication. 5. In the HURIER model, evaluating involves making sense of verbal and nonverbal codes to assign meaning to the information received.
Which of the following is the critical path?
A. Path 1 takes 18 days. B. Path 2 takes 14 days. C. Path 3 takes 22 days. D. Path 4 takes 16 day.
Prior to the introduction path–goal theory, studies of leadership examined leaders and, to a lesser extent, followers. What new element did path goal theory introduce to the study of leadership?
What will be an ideal response?
Which of the following can be protected by using trademark law?
A) a short story written on a word processor B) a logo used to identify a business C) the product formula used to manufacture a famous soft drink D) the bottling machine used to fill bottles in a beverage company