Falcon Company Uses a Standard Cost System; as Such, All

question 142

Essay

Falcon Company uses a standard cost system; as such, all inventories are carried on the books at standard cost. During the most recent period the company manufactured 12,000 units. The standard cost sheet indicates that the standard direct labor cost per unit is $1.50. The performance report for the period includes an unfavorable direct labor rate variance of $1,000 and a favorable direct labor efficiency variance of $275.
Required:
What was the total actual cost of direct labor incurred during the period, to the nearest whole dollar?

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Definitions:

Monetarily

Related to money or financial transactions.

Communication Skills

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Organization

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Imagination and Creativity

The ability to form new ideas, concepts, or solutions that have not been previously envisioned.