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. $1,200 unfavorable
B. $2,450 unfavorable
C. $1,200 favorable
D. $3,650 favorable
E. $2,450 favorable
Answer: D
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All business corporations derive their existence from the:
A. common law. B. state in which they are incorporated. C. federal government. D. Commerce Clause of the U.S. Constitution.
A company may need to trade-off between ______.
a. transportation costs and responsiveness to its customers b. transportation costs and compliance with government regulations c. government regulations and responsiveness to its customers d. responsiveness to its customers and ISO standards
The National Labor Relations Board is an administrative body that prevents union members from engaging in illegal labor practices
Indicate whether the statement is true or false
Seth told the salesperson at Outdoor Times that he wanted the sleeping bag that was advertised in the Sunday paper; one that would keep him comfortable if the temperature drops to 10 degrees Fahrenheit. The salesperson told Seth they were sold out of that bag, but there were two other styles that would meet his needs and were the same price. Seth insisted he wanted the advertised bag and
threatened to sue for breach of contract. Which is true? a. Outdoor Times is guilty of "bait and swap.". b. Seth will prevail in his case, as Outdoor Times is responsible for having sufficient stock of advertised items. c. Seth will not prevail, as the advertisement was simply a request for offers. d. Outdoor Times must provide Seth with a raincheck, ensuring he can buy the same bag at the sales price at a later date.