Dirickson Inc

question 185

Multiple Choice

Dirickson Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours.
The company has reported the following actual results for the product for July:

-The labor rate variance for the month is closest to:

• A) $1,312 F
• B) $1,312 U
• C) $1,216 U
• D) $1,216 F

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Definitions:

Pay Differential

The difference in payment rates based on factors such as job function, location, or hours worked.

Market Forces

Economic factors that influence the supply, demand, and pricing of goods and services without direct governmental intervention.

Exempt Employees

Managers, outside salespeople, and any other employees not covered by the FLSA requirement for overtime pay.

Pay Rates

The amount of money an employee receives for their work, often determined by hour, salary, or piece rate.