(Appendix 10B) The Dexon Company makes and sells a single product, called a Mip, and employs a standard costing system. The following standards have been established for one unit of Mip: Standard Quantity or Hours Standard Cost per Mip Direct Materials 6 board metre $9.00 Direct Labour 0.8 hours $9.60 There were no inventories of any kind on August 1. During August, the following events occurred: Purchased 15,000 board metres at the total cost of $24,000. Used 12,000 board metres to produce 2,100 Mips. Used 1,700 hours of direct labour time at a total cost of $20,060. (Appendix 10B) To record the incurrence of direct labour cost and its use in production, the general ledger would include what entry to the Labour Rate Variance account? Question 10 options: $240 credit. $240 debit. $340 debit. $340 credit.
(Appendix 10B) The Dexon Company makes and sells a single product, called a Mip, and employs a standard costing system. The following standards have been established for one unit of Mip: Standard Quantity or Hours Standard Cost per Mip Direct Materials 6 board metre $9.00 Direct Labour 0.8 hours $9.60 There were no inventories of any kind on August 1. During August, the following events occurred: Purchased 15,000 board metres at the total cost of $24,000. Used 12,000 board metres to produce 2,100 Mips. Used 1,700 hours of direct labour time at a total cost of $20,060. (Appendix 10B) To record the incurrence of direct labour cost and its use in production, the general ledger would include what entry to the Labour Rate Variance account? Question 10 options: $240 credit. $240 debit. $340 debit. $340 credit.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
(Appendix 10B) The Dexon Company makes and sells a single product, called a Mip, and employs a standard costing system. The following standards have been established for one unit of Mip:
There were no inventories of any kind on August 1. During August, the following events occurred:
Purchased 15,000 board metres at the total cost of $24,000.
Used 12,000 board metres to produce 2,100 Mips.
Used 1,700 hours of direct labour time at a total cost of $20,060.
(Appendix 10B) To record the incurrence of direct labour cost and its use in production, the general ledger would include what entry to the Labour Rate Variance account?
| Standard Quantity or Hours | Standard Cost per Mip | |
| Direct Materials | 6 board metre | $9.00 |
| Direct Labour | 0.8 hours | $9.60 |
There were no inventories of any kind on August 1. During August, the following events occurred:
Purchased 15,000 board metres at the total cost of $24,000.
Used 12,000 board metres to produce 2,100 Mips.
Used 1,700 hours of direct labour time at a total cost of $20,060.
(Appendix 10B) To record the incurrence of direct labour cost and its use in production, the general ledger would include what entry to the Labour Rate Variance account?
Question 10 options:
|
|
$240 credit.
|
|
|
$240 debit.
|
|
|
$340 debit.
|
|
|
$340 credit.
|
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