Wild West Inc

question 98

Multiple Choice

Wild West Inc.produces a product requiring 3 direct labour hours at $20.00 per hour.During January, 2,000 products are produced using 6,300 direct labour hours.Wild West's actual payroll during January was $122,850.What is the labour quantity variance?

• A)$2,850 U
• B)$6,000 F
• C)$3,150 F
• D)$6,000 U

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Definitions:

Subrogation

The legal right held by insurers to pursue a third party that caused an insurance loss to the insured.

Secured

Relating to a loan or obligation that is backed by collateral, ensuring the lender has recourse in case of default by the borrower.

Obligation

A legal or moral duty to do or not to do something, often resulting from a contract or promise.

Subrogation

The process by which one party assumes the legal rights of another party to collect a debt or claim.