Simms Limited Had a Favourable Direct-Labour Efficiency Variance of $8,000

question 86

Multiple Choice

Simms Limited had a favourable direct-labour efficiency variance of $8,000 for the period just ended. The actual wage rate was $0.70 more than the standard rate of $10.00. If the company's standard hours allowed for actual production totalled 10,000, how many hours did the firm actually work?

• A)800.
• B)8,000.
• C)9,200.
• D)10,000.
• E)18,000.

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Definitions:

U.S. Monetary Policy

The Federal Reserve's actions to regulate the nation's money supply and interest rates to achieve macroeconomic objectives like controlling inflation.

Inflation Rate

The inflation rate is the percentage increase in the general level of prices for goods and services over a period of time.

Money Supply Growth Rate

The rate at which the total amount of money in circulation or in existence in a country grows.

Short-Run Phillips Curve

A graphical representation showing the inverse relationship between inflation and unemployment rates in the short term.