The Following Information Describes a Company's Usage of Direct Labor

question 74

Multiple Choice

The following information describes a company's usage of direct labor in a recent period:
$\begin{array}{|l|r|}\hline \text { Actual direct labor hours used } & 44,000 \\\hline \text { Actual rate per hour } & \$ 20 \\\hline\text { Standard rate per hour } & \$ 18 \\\hline \text { Standard hours for units produced } & 42,000 \\\hline\end{array}$
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How much is the direct labor efficiency variance?

• A) $40,000 unfavorable
• B) $40,000 favorable
• C) $36,000 favorable
• D) $36,000 unfavorable

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Definitions:

Archival Study

A research method that involves analyzing existing records or documents to gather data and study patterns or trends.

Naturalistic Observation

A research method in which subjects are observed in their natural environment without any manipulation by the observer.

Surveys

A research method involving the collection of data from a predefined group of respondents to gather information and insights about various topics.

Method Research

A systematic approach to collecting data and gaining knowledge in a specific field, often associated with scientific or academic investigations.