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:

Compounded Annually

Refers to the process of earning interest on both the initial principal and the accumulated interest from previous periods on a deposit or loan.

Maturity Value

The amount of money that an investment will grow to at the end of its investment period.

Compounded Monthly

Interest on an investment or loan calculated each month and added to the balance, so that subsequent interest calculations include interest on the previous interest.

Receivable Contract

An agreement where one party has the right to receive a payment or series of payments from another party.