Clement Marine Stores Company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor
Clement uses standard costs to prepare its flexible budget. For the first quarter of the year, direct materials and direct labor standards for one of their popular products were as follows:
Direct materials: 4 pounds per unit; $4 per pound
Direct labor: 4 hours per unit; $17 per hour
Clement produced 5,000 units during the quarter. At the end of the quarter, an examination of the labor costs records showed that the company used 23,000 direct labor hours and actual total direct labor costs were $390,000. The direct labor efficiency variance was $51,000 U. Which of the following is a logical explanation for this variance?
A) The company used more labor hours than allowed by the standards.
B) The company paid a higher cost per hour for labor than allowed by the standards.
C) The company used a higher quantity of direct materials than allowed by the standards.
D) The company paid a higher cost for the direct materials than allowed by the standards.
A
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Future goods can be the subject of a present sale
a. True b. False Indicate whether the statement is true or false
Describe the variables used to segment business markets, and provide at least one example of each.
What will be an ideal response?
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