The Following Data Relate to Direct Labor Costs for the Current

question 38

Multiple Choice

The following data relate to direct labor costs for the current period: $$\begin{array} { l l } \text { Standard costs } & 36,000 \text { hours at } \$ 23.50 \\\text { Actual costs } & 35,000 \text { hours at } \$ 23.00\end{array}$$ What is the direct labor time variance?

• A) $23,000 unfavorable
• B) $23,500 unfavorable
• C) $23,500 favorable
• D) $23,000 favorable

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Definitions:

Dividend Paid

Dividend Paid refers to the amount of earnings distributed by a corporation to its shareholders as a reward for their investment.

Preferred Stock

A type of stock issued by corporations, which gives holders a right to share in earnings and liquidation before common shareholders do.

Capital Stock

The general term applied to the shares of a corporation.

Preferred Stock

A class of ownership in a corporation that has a higher claim on the assets and earnings than common stock.