Patterson Company
the Following Information Is for Patterson Company's July

question 113

Multiple Choice

Patterson Company
The following information is for Patterson Company's July production:
$\begin{array}{l}\text { Standards: }\\\begin{array}{ll}\text { Material } & 3.0 \text { feet per unit@ } \$ 4.20 \text { per foot } \\\text { Labor } & 2.5 \text { hours per unit@ } \$ 7.50 \text { per hour }\end{array}\end{array}$

$\begin{array}{l}\text { Actual: }\\\begin{array}{ll}\text { Production } & 2,750 \text { units produced during the month } \\\text { Material } & 8,700 \text { feet used; } 9,000 \text { feet purchased @ } \$ 4.50 \text { per foo } \\\text { Labor } & 7,000 \text { direct labor hours@ } \$ 7.90 \text { per hour }\end{array}\end{array}$

(Round all answers to the nearest dollar. )
Refer to Patterson Company.What is the labor rate variance?

• A)$3,480 U
• B)$3,480 F
• C)$2,800 U
• D)$2,800 F

---

Definitions:

Discrimination

Unfair treatment of individuals or groups based on characteristics such as race, gender, age, or sexual orientation instead of individual merit.

Civil Rights Act

Legislation aimed at ending discrimination based on race, color, religion, sex, or national origin, and promoting equal rights and opportunities.

Work-Related Injury

Injuries or illnesses that occur in the course of employment, potentially eligible for worker's compensation.

Workers' Compensation

A form of insurance providing wage replacement and medical benefits to employees injured in the course of employment.