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The Standard Rate of Pay Is $20 Per Direct Labor

question 226

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The standard rate of pay is $20 per direct labor hour. If the actual direct labor payroll was $117600 for 6000 direct labor hours worked the direct labor price (rate) variance is


Definitions:

Statement of Cash Flows

A financial report summarizing the amount of cash and cash equivalents entering and leaving a company.

Operating Activities

Business transactions and events related to the primary revenue-generating activities of an organization, influencing cash flow.

Indirect Method

An approach used in cash flow statements to reconcile net income with cash flow from operating activities, adjusting for non-cash transactions.

Accumulated Depreciation

The cumulative value of depreciation expense assigned to a physical asset since it was first utilized.

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