Monster Company Produces a Product Requiring 3 Direct Labor Hours

question 142

Multiple Choice

Monster Company produces a product requiring 3 direct labor hours at $16.00 per hour. During January 2000 products are produced using 6300 direct labor hours. Monster's actual payroll during January was $98280. What is the labor quantity variance?

• A) $2280 U
• B) $4800 F
• C) $2520 F
• D) $4800 U

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Definitions:

September

The month that appears as the ninth in the sequence of months in the Gregorian calendar.

Fixed Manufacturing Cost

A type of overhead cost that does not change with the level of production, such as rent, salaries, and insurance.

Units Produced

Units produced refers to the total number of completed units of a product that a company has manufactured within a specific period.

Direct Costs

Expenses that can be directly attributed to a specific product, job, or project.