Yola Company Manufactures a Product with Standards for Direct Labour

question 13

Multiple Choice

Yola Company manufactures a product with standards for direct labour of 4 direct labour-hours per unit at a cost of $12.00 per direct labour-hour.During June,1,000 units were produced using 4,100 hours at $12.20 per hour.What was the direct labour efficiency variance?

• A) $1,200 favourable.
• B) $1,200 unfavourable.
• C) $2,020 favourable.
• D) $2,020 unfavourable.

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Definitions:

Quality Goal

A quality goal is an objective set by an organization to maintain or enhance the standard of their products or services to meet or exceed customer expectations.

Financial Return

The profit or loss generated on an investment over a specific period, often expressed as a percentage of the investment's cost.

ROI

Return on investment; a measure of the profitability of an investment expressed as a percentage of the initial amount invested.

Profit Goals

Specific financial targets that a company aims to achieve within a certain period, often measured in terms of net income or margin percentages.