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:

Production

The process of creating goods or services, involving tasks such as design, raw material procurement, manufacturing, and quality control.

Consumer Tastes

Preferences and inclinations of consumers in terms of what they like, desire, or find appealing.

Yield Management Pricing

A pricing strategy that involves adjusting prices based on demand to maximize revenue.

Demand-Backward Pricing

A pricing strategy where the starting point is the consumer's desired price, and costs are worked backward to determine if a product can be profitably produced.