Standard Tires' Labor Standard for the Production of One Bicycle

question 32

Multiple Choice

Standard Tires' labor standard for the production of one bicycle tire is 4.5 hours at $8.50 per hour.During October, the company's employees produced 140,000 tires, using 610,000 hours at a total cost of $5,328,400.How much is Standard Tire's labor efficiency variance?

• A)$143,400 unfavorable
• B)$26,600 favorable
• C)$170,000 favorable
• D)$313,400 favorable

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Definitions:

Lead Time

The time taken from initiating a process until its completion, often used in the context of the time between ordering a product and its delivery.

Fill Rate

A metric that measures the percentage of customer or sales orders that are fulfilled from stock available, indicating the ability to meet demand.

Standard Deviation

An indicator of the extent of variability or spread within a dataset, showing how significantly the values deviate from the average.

Lead Time

The amount of time that passes from the start of a process until its completion, often used in supply chain and project management.