The Following Data Relate to Direct Labor Costs for the Current

question 27

Multiple Choice

The following data relate to direct labor costs for the current period:Standard costs7,500 hours at $11.70Actual costs6,000 hours at $12.00​What is the direct labor time variance?

• A) $18,000 favorable
• B) $18,000 unfavorable
• C) $17,550 unfavorable
• D) $17,550 favorable

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Definitions:

Modified AGI

Adjusted Gross Income with certain deductions and exclusions added back in, used to determine eligibility for certain tax benefits.

Adjusted Gross Income

An individual's total gross income minus specific deductions allowed by the IRS, used to determine tax liability.

Deduction

An expense that can be subtracted from gross income to reduce the taxable income.

Imputed Interest Rules

Regulations set by the IRS to assign a reasonable interest rate to financial transactions that do not state their own interest or whose interest is deemed insufficient.