Accurate Tax Returns Budgets Two Direct Labor Hours for Every

question 70

Multiple Choice

Accurate Tax Returns budgets two direct labor hours for every tax return that it prepares,at a standard cost of $34 an hour.During the most recent year,520 returns were completed with the labor cost totaling $18,000.The actual labor cost was $34.62 per hour during that period.The actual number of labor hours was 1200.What is the direct labor cost variance?

• A) $320 F
• B) $40,800 U
• C) $744 U
• D) $40,800 F

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Definitions:

Replenishment Lead Time

The time required to order, process, and deliver a shipment of goods from the supplier to the retailer, crucial for inventory management.

Safety Inventory

Extra inventory held to protect against stockouts caused by variations in demand or supply, serving as a buffer to ensure customer service levels.

Supplier Services

The range of services provided by suppliers to support their products, including delivery, installation, and maintenance.

Bulk Purchase

The acquisition of goods in large quantities, often at a reduced price, typically for the purpose of resale or large-scale operations.