Mandy Company Has the Following Information from Last Month What Was Mandy's Direct Labor Rate Variance for the Month

question 131

Multiple Choice

Mandy Company has the following information from last month: $\begin{array}{lr}\text { Standard direct labor hours allowed for units produced (SQ) } & 3,600 \\\text { Actual direct labor hours worked (AQ) } & 3,480 \\\text { Direct labor efficiency variance, favorable (F) } & \$ 5,760 \\\text { Total payroll } & \$ 187,920\end{array}$ What was Mandy's direct labor rate variance for the month, rounded to the nearest dollar?

• A) $15,120 unfavorable.
• B) $20,880 unfavorable.
• C) $23,490 unfavorable.
• D) $42,480 favorable.

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Definitions:

Identification-Based Trust

A form of trust grounded in the mutual understanding and empathy between parties, often resulting from shared values and experiences.

Management

The act of organizing, planning, leading, and controlling resources to achieve specific objectives.

Market Pricing Relationship

A type of social exchange that relies on market principles such as supply and demand to set the value of transactions.

Interchangeable

Capable of being substituted or replaced by another similar item, implying a degree of similarity and mutual substitutibility.