Quick Tax Returns Budgets 1

question 113

Multiple Choice

Quick Tax Returns budgets 1.5 direct labor hours for every tax return that it prepares, at a standard cost of $20 an hour. During the most recent year, 500 returns were completed with the labor cost totaling $17,600. The actual labor cost was $22 per hour during that period. What was the direct labor price variance?

• A) $1,500 unfavorable
• B) $1,500 favorable
• C) $1,600 favorable
• D) $1,600 unfavorable

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Definitions:

Antitrust Laws

Regulations that prevent monopolies and promote competition among businesses.

Economic Matters

Issues and situations that involve the production, distribution, and consumption of goods and services.

Money Supply

The total financial capital in an economy at a given point in time, including the accumulation of cash, coins, and balances in checking and savings accounts.

Coordinate System

A system of geometry where the position of points on a plane is described using an ordered pair of numbers.