Dem Mfg Has Gathered the Following Data in Preparing to Record

question 98

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 price was:

• A) $8.00
• B) $8.20
• C) $9.10
• D) $7.80

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Definitions:

Receivable from Factor

Funds to be received from a factor, a financial intermediary that purchases receivables from a company, providing it with immediate cash.

Factoring Expense

Costs associated with the process of selling accounts receivable to a third party to obtain immediate cash.

Financing Agreement

A legal contract between a borrower and a lender, outlining the terms for borrowing funds, including the interest rate, repayment schedule, and other conditions.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services that have been delivered but not yet paid for.