A company uses the following standard costs to produce a single unit of output. Direct materials6 pounds at $0.90 per pound=$5.40 Direct labor0.5 hour at $12.00 per hour=$6.00 Manufacturing overhead0.5 hour at $4.80 per hour=$2.40 During the latest month, the company purchased and used 58,000 pounds of direct materials at a price of $1.00 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $56,350 based on 4,900 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $15,000 and fixed manufacturing overhead incurred was $10,400. Based on this information, the total direct labor cost variance for the month was:
A. $2,450 favorable
B. $2,450 unfavorable
C. $3,650 favorable
D. $1,200 unfavorable
E. $1,200 favorable
Answer: C
You might also like to view...
Because the production division at Heavenly Gates Inc. is $10,000 below budget due to process improvements, this year 30 percent of the savings will be returned to the division to spend as desired, as a form of
A. pay for performance. B. pay for knowledge. C. gainsharing. D. profit sharing. E. stock options.
What is the service-profit chain?
a. the impact of guest satisfaction scores on profit b. the impact of gratuity and bonuses on service level, upselling, and profitability c. the impact of managerial and organizational practices on employee attitudes, customer satisfaction, and profitability d. the impact of positive employees on revenue production
Which sentence effectively uses words that are familiar to businesspeople?
A) Please ascertain whether the deliverance of merchandise will be forthcoming in the duration of the business cycle. B) He was not cognizant of the actuality that he was still in a probationary period. C) A financial deficit may be encountered during the transitional period following the merger. D) The board of directors will soon meet to discuss acquiring the Sonar Company. E) The accountant will commence to compute the amount of monetary funds that should be allocated for remunerations.
Using only some of the available outlets to distribute a product is called
A. selective distribution. B. intensive distribution. C. channel conflict. D. vertical channel integration. E. exclusive distribution.