The Standard Costs and Actual Costs for Direct Labor in the Manufacture

question 106

Multiple Choice

The standard costs and actual costs for direct labor in the manufacture of 2,500 units of product are as follows: Standard Costs
Direct labor
7,500 hours @ $11.80
Actual Costs
Direct labor
7,400 hours @ $11.40
The direct labor time variance is

• A) $1,180 favorable
• B) $1,140 unfavorable
• C) $1,180 unfavorable
• D) $1,140 favorable

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Definitions:

The Product

Refers to any item or service that is created through a process and is offered for sale to customers.

Productivity

The efficiency with which an organization or individual converts inputs into outputs, often measuring how much work is done in a given amount of time.

WMS

A Warehouse Management System, software that supports the day-to-day operations in a warehouse by managing and optimizing inventory, picking processes, and shipping.

Database

An organized collection of data, generally stored and accessed electronically from a computer system, designed for efficient retrieval and management of information.