The Following Information Describes a Company's Usage of Direct Labor

question 121

Multiple Choice

The following information describes a company's usage of direct labor in a recent period. The total direct labor cost variance is: $\begin{array}{llcc} \text { Actual hours used} &45,000\\ \text {Actual rate per hour } &\$15.00\\ \text { Standard rate per hour} &\$14.50\\ \text { Standard hours for units produced } &47,000\\\end{array}$

• A) $6,500 favorable.
• B) $29,000 favorable.
• C) $22,500 unfavorable.
• D) $22,500 favorable.
• E) $6,500 unfavorable.

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Definitions:

Fourteen Points

A statement of principles for world peace that was used for peace negotiations to end World War I, proposed by President Woodrow Wilson in 1918.

War Industries Board

A U.S. government agency established during World War I to coordinate the production of war materials and the distribution of industrial products.

National Economy

The total economic activities and policies within a country, encompassing production, consumption, and trade of goods and services.

Antitrust Laws

Legislation enacted to prevent monopolies and promote competition among businesses.