Twin Pines Custom Trim Established the Standard Labor Rate as $8.60

question 86

Multiple Choice

Twin Pines Custom Trim established the standard labor rate as $8.60 and the standard hours as 4 hours per unit. During June, 100 units were manufactured, and 410 actual labor hours were incurred at a rate of $8.50 per hour. The labor efficiency variance is:

• A) $86 unfavorable
• B) $45 unfavorable
• C) $41 favorable
• D) $45 unfavorable.

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Definitions:

Nation

A large body of people united by common descent, history, culture, or language, inhabiting a particular country or territory.

Performance Measurement

The process of assessing progress towards achieving predetermined goals, typically involves quantitatively and qualitatively evaluating the efficiency and effectiveness of action.

Process Reengineering

The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance such as cost, service, and speed.

Management Systems

Frameworks used by organizations to coordinate activities, achieve objectives, and manage resources effectively.