Heartwood Company Reported a $4,000 Favorable Direct Labor Price Variance

question 30

Multiple Choice

Heartwood Company reported a $4,000 favorable direct labor price variance and a $1,500 unfavorable direct labor usage variance.Select the correct statement from the following.

• A) It took the employees less time to produce the outputs than expected.
• B) The total direct labor variance is $2,500 favorable.
• C) The actual direct labor rate must have exceeded the standard direct labor rate.
• D) It is probable that the supervisor attempted to use more highly skilled (and paid) employees than allowed for by the direct labor standards.

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Definitions:

Spot Exchange Rate

The current exchange rate at which a foreign currency can be bought or sold for immediate delivery.

Forward Exchange Rate

The forward exchange rate is the agreed-upon exchange rate for a currency pair to be traded on a future date, used to hedge against currency risk.

Foreign Exchange Market

A financial market in which the currencies of different countries are traded.

Direct Quote

A representation of the exchange rate between two currencies, stating how much of the home currency is required to buy one unit of the foreign currency.