Use the Following Data to Find the Direct Labor Rate

question 42

Multiple Choice

Use the following data to find the direct labor rate variance if the company produced 7,000 units of product during the period.

• A)$12,250 unfavorable.
• B)$14,700 unfavorable.
• C)$14,700 favorable.
• D)$12,250 favorable.
• E)$26,950 favorablE.

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Definitions:

Marketable Securities

Financial instruments that can be easily converted to cash, such as stocks, bonds, and Treasury bills.

Earnings Per Share

A metric used to measure a company’s profitability, calculated as the company's net profit divided by the number of outstanding shares.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenues.

Common Shares Outstanding

The total number of shares of common stock that are issued and actively held by shareholders, excluding treasury shares.