Hobart Company Manufactures Patio Umbrellas

question 93

Multiple Choice

Hobart Company manufactures patio umbrellas.The direct labor standard for each umbrella is 1.25 direct labor hours at a standard rate of $12.00 per hour.During June, Hobart used 36,000 direct labor hours to produce 30,000 umbrellas.Hobart's direct labor payroll totaled $428,400.What is Hobart's direct labor efficiency variance for November?

• A)$3,600 unfavorable
• B)$3,600 favorable
• C)$18,000 favorable
• D)$18,000 unfavorable

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Definitions:

PERT

Project Evaluation and Review Technique, a method used to analyze and represent the tasks involved in completing a given project.

CPM

Critical Path Method; a project management technique used to estimate the minimum project duration and determine the amount of scheduling flexibility on the logical network paths within the project plan.

PERT

Short for Program Evaluation and Review Technique, a project management tool used to schedule, organize, and coordinate tasks within a project.

CPM

Critical Path Method, a project management tool used to schedule, organize, and coordinate tasks within a project.