Bartels Corp

question 52

Multiple Choice

Bartels Corp.produces woodcarvings.It takes two hours of direct labor to produce a carving.Bartels' standard labor cost is $12 per hour.During August,Bartels produced 10,000 carvings and used 21,040 hours of direct labor at a total cost of $250,376.What is Bartels' labor cost variance for August?

• A) $10,376 unfavorable
• B) $2,104 unfavorable
• C) $2,104 favorable
• D) $12,480 unfavorable
• E) $ 12,480 favorable

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Definitions:

Sales/Total Assets

A financial ratio that measures how efficiently a company is using its assets to generate sales.

Pretax Profit

Earnings before tax, indicating the profitability of a business before accounting for tax obligations.

Net Profit

The amount of money earned by a company after all expenses and taxes have been subtracted from total revenue.

Leverage Ratio

A financial ratio indicating the degree to which a company or individual is financing its operations through debt, compared to its equity.