The Standard Rate of Pay Is $20 Per Direct Labor

question 226

Multiple Choice

The standard rate of pay is $20 per direct labor hour. If the actual direct labor payroll was $117600 for 6000 direct labor hours worked the direct labor price (rate) variance is

• A) $2400 unfavorable.
• B) $2400 favorable.
• C) $3000 unfavorable.
• D) $3000 favorable.

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Definitions:

Uniform Commercial Code

A standardized set of laws that regulate financial contracts and transactions in the United States to facilitate commerce.

Time Of Payment

The specific date or schedule agreed upon for payment to be made in a transaction.

Bearer Instrument

A type of negotiable financial instrument that entails payment to whoever holds the document, without requiring the transfer to be recorded, distinguishing it from other securities which are registered to specific owners.

Payable

Refers to an amount of money that is owed by a person or company to a creditor, typically categorized in financial statements as current liabilities.