Dillon Has a Standard of 2 Hours of Labor Per

question 209

Multiple Choice

Dillon has a standard of 2 hours of labor per unit at $12 per hour. In producing 2000 units Dillon used 3850 hours of labor at a total cost of $46970. Dillon's total labor variance is

• A) $1030 U.
• B) $800 U.
• C) $1030 F.
• D) $1930 F.

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Definitions:

Actual Cost

The actual expenditure incurred on goods or services, including all amounts spent to acquire them, minus any discounts or rebates.

Cash-Equivalent Amount

The value of an asset that can easily be converted into a known amount of cash within a short period.

Fraud Triangle

A model explaining the factors that cause an individual to commit fraud, including pressure, opportunity, and rationalization.

Opportunity

A set of circumstances that makes it possible to do something, especially in terms of making business decisions or investments that could lead to profit.