Dillon Has a Standard of 2 Hours of Labor Per

question 243

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 labor price variance is

• A) $770 U.
• B) $800 U.
• C) $1030 F.
• D) $1930 F.

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Definitions:

Income Statement Account

An income statement account is a financial account that reflects income, expenses, gains, and losses over a period, used to calculate net income.

Stock Dividend

A distribution of additional shares of a company to its shareholders instead of paying cash dividends, often used to conserve cash while still rewarding investors.

Par Value

The nominal or face value of a bond, stock, or coupon as stated by the issuer, which often bears no relation to its market value.

Common Stock Dividends Distributable

A liability account that represents dividends declared by a company but not yet distributed to shareholders.