Dem Mfg Has Gathered the Following Data in Preparing to Record

question 93

Multiple Choice

Dem Mfg. has gathered the following data in preparing to record their direct labour payroll costs for the week: $$\begin{array} { l l } \text { Actual hours morked } & 18,500 \\\text { Standard hours allowed } & 20,000 \\\text { Total direct labour variance } & \$ 8,300 \mathrm {~F} \\\text { Direct labour price variance } & \$ 3,700 \mathrm { U }\end{array}$$ The actual direct labour costs were:

• A) $144,300
• B) $148,000
• C) $160,000
• D) $151,700

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Definitions:

Competitive Firms

Companies that operate in a market where there are many buyers and sellers participating with minimal restrictions, leading to competitive prices and product offerings.

Total Costs

The sum of all costs incurred by a business in the production of goods or services, including both fixed and variable costs.

Total Revenues

The total amount of money generated by a firm or entity from its business activities, before any expenses are subtracted.

Average Total Cost

The total cost of production divided by the quantity of output produced; it includes both fixed and variable costs.