Swan Company Has a Direct Labor Standard of 15 Hours

question 72

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,and 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:

Adjusting Entry

A journal entry made at the end of an accounting period to update the accounts for accurate financial reporting.

Straight-Line Method

The straight-line method is a depreciation technique that allocates an equal portion of the cost of an asset to each accounting period over its useful life.

Interest Expense

Interest expense is the cost incurred by an entity for borrowed funds over a period of time.

Adjusting Entry

An accounting procedure for updating the records of unrecorded expenses or revenues to ensure accurate financial statements.