Polaco Corporation Makes a Product That Has the Following Direct

question 209

Multiple Choice

Polaco Corporation makes a product that has the following direct labor standards: In May the company produced 8,500 units using 3,220 direct labor-hours. The actual direct labor rate was $22.10 per hour.
The labor efficiency variance for May is:

• A) $3,978 F
• B) $4,320 F
• C) $4,320 U
• D) $3,978 U

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Definitions:

Free-Market System

An economic system based on supply and demand with minimal governmental control, where prices are determined by the interactions between consumers and businesses.

Marxist Economy

An economic system based on the socio-economic theories of Karl Marx, focusing on the role of labor in the development of an economy and the concept of class struggle.

Planned Economy

An economic system where the government controls and regulates production, distribution, and prices.

Laissez-Faire Economy

an economic system with minimal government intervention, where transactions are dictated by private parties.