Cruz Company Established a Direct Labor Standard of 0

question 132

Essay

Cruz Company established a direct labor standard of 0.5 hour per unit at $12 per hour for one of its products.In April,Cruz produced 16,000 units and used 8,100 direct labor hours.
Required:
Based on this information,
(a)Which variance can you calculate?
(b)What is the dollar amount of the variance?
(c)Is the variance favorable or unfavorable?
(d)Do you consider the variance to be sufficiently material that managers should investigate to discover the cause of the variance?

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Definitions:

Tickling Sensation

A complex sensory response to light touch or stroking, often resulting in involuntary laughter or movements to avoid the stimulus.

Borderline Personality Disorder

A personality disorder characterized by instability in relationships, self-image, mood, and lack of impulse control.

Antisocial Personality Disorder

A mental condition where an individual consistently shows no regard for right and wrong and ignores the rights and feelings of others.

Hoarding Disorder

A psychiatric condition characterized by persistent difficulty discarding or parting with possessions, regardless of their actual value.