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:

Bud Scales

Protective structures that cover and protect the developing bud in some plants, especially during dormant periods.

Modified Leaf

A leaf that has altered its shape, structure, or function from the typical form to serve specific roles, such as protection, reproduction, or storage.

Bud Scales

Protective structures that cover the developing bud of a plant, helping to shield it from environmental damage and desiccation.

Guttation

The exudation of small droplets of water from the pores of plants, typically occurring at the leaf margins or tips.