Hardigree Corporation Makes a Product That Has the Following Direct

question 101

Multiple Choice

Hardigree Corporation makes a product that has the following direct labor standards:
In May the company's budgeted production was 8,900 units, but the actual production was 8,800 units. The company used 2,820 direct labor-hours to produce this output. The actual direct labor cost was $70,218.
-The labor rate variance for May is:

• A) $5,016 U
• B) $5,358 U
• C) $5,016 F
• D) $5,358 F

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Definitions:

Marginal Benefit

The surplus benefit or joy experienced upon consuming an additional unit of a good or service.

Expected Profit

The anticipated return on an investment or business venture after considering all relevant costs and revenues.

Optimal R&D

The most efficient level of investment in research and development activities that maximizes the benefits from new knowledge and products.

Expected Rate Of Return

The estimated gain or loss of an investment over a given period, expressed as a percentage.