Swan Company Has a Direct Labor Standard of 15 Hours

question 15

Multiple Choice

Swan Company has a direct labor standard of 15 hours per unit of output. Each employee has a standard wage rate of $14 per hour. During March, employees worked 13,100 hours. The direct labor rate variance was $9,170 favorable, the direct labor efficiency variance was $15,400 unfavorable. How many units were produced?

• A) 873 units
• B) 655 units
• C) 1,100 units
• D) 800 units

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Definitions:

Sales Forecasts

Predictions about future sales volumes based on historical data, market analysis, and other factors.

Stock

Shares of ownership in a company, representing a claim on the company's assets and earnings.

Primary Inventory Management

Refers to the basic approaches and strategies businesses use to control their goods, materials, and products to ensure availability while minimizing costs.

Distribution Center

A specialized building designed for storing and sorting products to facilitate their distribution to retailers, wholesalers, or directly to consumers.