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

question 128

Multiple Choice

The standard costs and actual costs for direct labor for the manufacture of 2,500 actual units of product are as follows:Standard CostsDirect labor7,500 hours @ $11.80Actual CostsDirect labor7,400 hours @ $11.40The direct labor rate variance is

• A) $2,960 unfavorable
• B) $4,500 favorable
• C) $2,960 favorable
• D) $4,500 unfavorable

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Definitions:

Fill-In-The-Blank

A type of question or statement in assessments and tests that requires participants to supply missing information or words.

Mental Set

A psychological term describing a pattern of approach to a problem in a particular way, often based on past experiences or habits.

Conventional Uses

The typical or standard applications and interpretations of objects, words, practices, etc., as agreed upon by a cultural or social group.

Jeweler

A professional skilled in the art of making and repairing jewelry.