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Delmar Inc

question 22

Essay

Delmar Inc.uses a standard cost system.Labor standards are 2 hours per widget at $13.30 per hour.During August,Delmar Inc.paid its workers $226,338 for 16,800 hours.Delmar Inc.produced 8,600 widgets during August.Calculate the:
a.direct labor rate variance.
b.direct labor efficiency variance.


Definitions:

Aggregate Quantity Demanded

The aggregate quantity of a product or service that buyers are prepared and capable of buying at a specific price point within a certain time frame.

Stagflation

An economic condition characterized by stagnant economic growth, high unemployment, and high inflation.

Price Level

The economy’s general price level across its full range of goods and services.

Short-run Equilibrium

A state in which market supply and demand balance each other, and, as a result, prices become stable temporarily.

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