Swan Company Has a Direct Labor Standard of 15 Hours

question 4

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. What was the actual payroll?

• A) $183,400
• B) $168,000
• C) $174,230
• D) $192,570

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Definitions:

Commercial Safes

Commercial safes are secure storage solutions designed for business use to protect valuable items, documents, and cash from theft or fire.

Standard Machine-hours

The predetermined amount of time that machines are expected to operate to meet production targets within a specific period.

Variable Overhead Efficiency Variance

The difference between the actual and the budgeted or standard cost of variable overheads based on the efficient usage of the business resources.

Total Variable Overhead Spending Variance

The variance between real variable overhead expenses and the anticipated expenses, which are determined using standard rates and the actual levels of production.