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Doogan Corporation Makes a Product with the Following Standard Costs

Question 181

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Doogan Corporation makes a product with the following standard costs: Doogan Corporation makes a product with the following standard costs:   The company produced 5,200 units in January using 39,310 grams of direct material and 2,380 direct labor-hours. During the month, the company purchased 44,400 grams of the direct material at $1.70 per gram. The actual direct labor rate was $19.30 per hour and the actual variable overhead rate was $6.80 per hour.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 January is: A)  $4,246 Unfavorable B)  $4,246 Favorable C)  $4,400 Unfavorable D)  $4,400 Favorable The company produced 5,200 units in January using 39,310 grams of direct material and 2,380 direct labor-hours. During the month, the company purchased 44,400 grams of the direct material at $1.70 per gram. The actual direct labor rate was $19.30 per hour and the actual variable overhead rate was $6.80 per hour.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 January is:


A) $4,246 Unfavorable
B) $4,246 Favorable
C) $4,400 Unfavorable
D) $4,400 Favorable

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