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:

Low Investment

A scenario characterized by minimal input of capital or resources towards business growth, expansion, or development activities.

Low Productivity

A situation where there is an inefficient use of resources, resulting in less output per unit of input, often affecting economic growth and competitiveness.

Adequate Infrastructure

Essential facilities and systems serving a country, city, or area, including transportation and communication systems, power plants, and schools, that are sufficient to support economic activities and improve quality of life.

Public Sector

The sector of an economy that is controlled or operated by the government, including services such as education, policing, and healthcare.