The Standard Direct Labor Cost for Producing One Unit of Product

question 39

Multiple Choice

The standard direct labor cost for producing one unit of product is 5 direct labor hours at a standard rate of pay of $12. Last month, 15,000 units were produced and 73,500 direct labor hours were actually worked at a total cost of $810,000. The direct labor quantity variance was

• A) $18,000 unfavorable.
• B) $27,000 unfavorable.
• C) $27,000 favorable.
• D) $18,000 favorable.

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Definitions:

Pneumatic

Refers to technology or devices operated by compressed air or gas.

Height Control Valve

A device in air suspension systems that maintains or adjusts the height of a vehicle by controlling the air flow.

Response Delay Mechanism

A system or feature designed to introduce a deliberate delay in response to inputs or signals, often for safety or control purposes.

Spring Suspension

A type of vehicle suspension that uses springs to absorb shock and maintain contact between the wheels and the road.