Use the Following Data That Relate to Product No

question 72

Multiple Choice

Use the following data that relate to product no. 33 of Volusia Corporation to answer the following Questions
Direct labor standard: 5 hours at $14 per hour
Direct labor used in production: 45,000 hours at a cost of $639,000
Manufacturing activity: 8,900 units completed


-The direct-labor rate variance is:

• A) $8,900F.
• B) $8,900U.
• C) $9,000F.
• D) $9,000U.
• E) None of the answers is correct.

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Definitions:

Costly Activities

Activities that involve a significant expenditure of resources such as time, money, or effort.

New Product

An item or service that has been recently developed or introduced to the market, offering new or improved features.

Minimum Wage Control

Regulatory measures that set the lowest hourly rate of pay that employers can legally offer their employees.

Fringe Benefits

Additional compensation provided to employees beyond their normal salaries or wages, such as health insurance, retirement plans, and paid time off.