Minmax Co'S Direct Labor Information for February Is as Follows

question 117

Multiple Choice

Minmax Co.'s direct labor information for February is as follows: $\begin{array}{lr}\text { Direct labor hours worked (AQ) } & 33,600 \\\text { Standard direct labor hours for units manufactured (SQ) } & 35,000 \\\text { Unfavorable direct labor rate variance } & \$ 11,760 \\\text { Total payroll for direct labor } & \$ 470,400\end{array}$ The total direct labor flexible-budget variance in February, to the nearest dollar, was:

• A) $7,350 favorable.
• B) $7,840 favorable.
• C) $30,870 favorable.
• D) $30,870 unfavorable.
• E) $31,360 favorable.

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Definitions:

Fixed-Rate Mortgages

A type of mortgage where the interest rate remains the same throughout the term of the loan.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set.

Competitive Rate

An interest rate, price, or charge that is favorable compared to those offered by competitors.

Residences

Places where individuals live or dwell for a period of time.