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:

Current Rate Method

A method of foreign currency translation where all financial statement line items are translated at the current exchange rate in effect at the reporting date.

GAAP

Generally Accepted Accounting Principles, a standardized set of accounting rules, standards, and procedures used in the accounting industry primarily in the United States.

Purchase Accounting

The process of consolidating and reporting the financials of a merger or acquisition by recording the assets and liabilities at their fair market values.

Business Combination

A transaction or other event in which an acquirer gains control over one or more businesses.