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Landers Company manufactures a number of products. The standards relating to one of these products are shown below, along with actual cost data for May.
Standard cost per unit Actual cost per unit
Direct Materials:
Direct Labor:
Variable over head:
The production superintendent was pleased when he saw this report and commented: "This $0.40 excess cost is well within the 2 percent limit management has set for acceptable variances. It's obvious that there's not much to worry about with this product."
Actual production for the month was 12,000 units. Variable overhead cost is assigned to products on the basis of direct labor-hours. There were no beginning or ending inventories of materials.
Required: Standard Rate?
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A substantive test of transactions to test the completeness assertion includes?
How much interest expense on this note will Montgomery recognize in 2013?
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