Kartman Corporation makes a product with the following standard costs: Standard Quantity or HoursStandard Price or RateStandard Cost Per UnitDirect materials 6.5pounds$7.00per pound$45.50Direct labor 0.6hours$24.00per hour$14.40Variable overhead 0.6hours$4.00per hour$2.40?In June the company's budgeted production was 3,400 units but the actual production was 3,500 units. The company used 22,150 pounds of the direct material and 2,290 direct labor-hours to produce this output. During the month, the company purchased 25,400 pounds of the direct material at a cost of $170,180. The actual direct labor cost was $57,021 and the actual variable overhead cost was $8,931.?The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is
computed when the materials are purchased.?The labor efficiency variance for June is:
A. $4,731 U
B. $4,560 U
C. $4,731 F
D. $4,560 F
Answer: B
You might also like to view...
Which of the following sample planning factors would influence the sample size for a substantive test of details for a specific account?
A. Expected amount of misstatement and the measure of tolerable misstatement. B. Expected amount of misstatement but not the measure of tolerable misstatement. C. Measure of tolerable misstatement but not the expected amount of misstatement. D. Neither the expected amount of misstatement nor the measure of tolerable misstatement.
When Simple Semiconductors was operating at the minimum efficient scale of 10,000-12,000 units per month, the firm's cost per unit was $45. However, when the output level was increased beyond 12,000 units, the cost per unit increased to $47. This increase was attributed to the wear-and-tear of the machinery, and complexities of managing and coordinating. What is this phenomenon known as?
A. minimum efficient scale B. learning-curve effect C. experience curve effect D. diseconomies of scale
Opie enters into a contract with Belle. Later, Opie is adjudged mentally incompetent. Raye, Opie's daughter, attempts to void Opie's contract with Belle on the ground of Opie's incompetency. The contract is
A. enforceable if Opie had capacity at the time the contract was formed. B. enforceable if Belle is also incompetent. C. enforceable if Raye knew of the contract when it was formed. D. void.
The Appleton Rule applies to all insurance companies doing business in Wisconsin
Indicate whether the statement is true or false