Motts Inc.has a standard cost system in which the standard direct labor for a particular product is 0.50 hours at the standard rate of $21.00 per hour.The company has reported the following actual results for the product for October:
Required:
a.Compute the labor rate variance for October.
b.Compute the labor efficiency variance for October.
Definitions:
Limited Budget
A financial plan that is constrained by a limited amount of resources, requiring prioritization and careful management.
Utility Maximization
The economic principle whereby individuals or firms seek to allocate their resources in a way that maximizes their satisfaction or utility.
Total Utility Data
Information that measures the overall satisfaction or benefit a consumer derives from consuming a certain quantity of goods or services.
Rational Consumer
A person who systematically and logically evaluates choices to maximize their satisfaction or utility.
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