The Actual Cost of Direct Labor Per Hour Is $16

question 41

Multiple Choice

The actual cost of direct labor per hour is $16.00 and the standard cost of direct labor per hour is $9.50. The direct labor hours allowed per finished unit is 0.25 hour. During the current period, 5700 units of finished goods were produced using 3500 direct labor hours. How much is the direct labor efficiency variance?

• A)$19,712.5 unfavorable
• B)$19,712.5 favorable
• C)$33,200 favorable
• D)$33,200 unfavorable

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Definitions:

Recession Phase

An interval of economic downturn where commercial and manufacturing operations decrease, commonly indicated by two successive quarters of falling GDP.

Disinflation

A slowdown in the rate of increase of the general price level of goods and services in a nation's gross domestic product over time.

Labor Force

The total number of people who are both employed and actively seeking employment.

Actively Looking

The process in which individuals engage in a diligent search for employment or opportunities, often involving submitting applications and attending interviews.