Frames Incorporated Budgeted Two Hours of Direct Labor Per Unit

question 15

Multiple Choice

Frames Incorporated budgeted two hours of direct labor per unit at $10.75 per hour to produce 600 units of product. The 600 units were completed using 1800 hours of direct labor at $13.00 per hour. What is the direct labor efficiency variance?

• A)$6450 unfavorable
• B)$6450 favorable
• C)$7800 unfavorable
• D)$7800 favorable

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Definitions:

Team Selling

A collaborative approach to sales where a group of individuals with different expertise and roles work together to sell a product or service to better meet customer needs and close deals more efficiently.

Team Selling

A sales strategy where a group of individuals with different expertise collaborates to sell a product or service.

Automated Industrial

Pertains to the application of automation technologies in industrial settings to increase efficiency and reduce human intervention.

Milling Machines

Tools designed for machining solid materials, such as metal or wood, by removing material to shape the final product.