The Fellowes Company Has Developed Standards for Direct Labor What Is the Direct Labor Rate Variance for June?
A)

question 112

Multiple Choice

The Fellowes Company has developed standards for direct labor. During June, 75 units were scheduled and 100 were produced. Data related to direct labor are:
$$\begin{array} { l c } \text { Standard hours allowed } & \text { 3hours per unit } \\\text { Standard wages allowed } & \$ 4.00 \text { per hour } \\\text { Actual direct labor } & 31 \text { hours (total cost } \$ 1,209 ) \end{array}$$
What is the direct labor rate variance for June?

• A) $30 unfavorable.
• B) $31 favorable.
• C) $31 unfavorable.
• D) $30 favorable.

---

Definitions:

Profit-Sharing

A compensation strategy where employees receive a portion of the company's profits in addition to their regular salary, linking their earnings to the company’s performance.

Flexible Benefit Plans

Employee benefit programs that allow workers to choose from a variety of pre-tax benefits, customized to their personal needs.

Skill-Based Pay

A compensation system where employees are paid based on the skills and qualifications they bring to their job, rather than just their job title or position.

Informal Rewards

Non-official recognition or rewards, often personal or social, given in the workplace or other settings.