A Company Has a Standard of 2 Hours of Direct

question 8

Multiple Choice

A company has a standard of 2 hours of direct labor per unit produced and $18 per hour for the labor rate.During last period,the company used 9,500 hours of direct labor at a $152,000 total cost to produce 4,000 units.Compute the direct labor rate and efficiency variances.

• A) Rate variance: $19,000 unfavorable; Efficiency variance: $27,000 favorable.
• B) Rate variance: $63,829 unfavorable; Efficiency variance: $99,000 unfavorable.
• C) Rate variance: $152,000 favorable; Efficiency variance: $99,000 unfavorable.
• D) Rate variance: $19,000 favorable; Efficiency variance: $27,000 unfavorable.
• E) Rate variance: $152,000 unfavorable; Efficiency variance: $99,000 favorable.

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Definitions:

Reticular Formation

A network of nerve pathways and nuclei in the brainstem that regulates arousal, wakefulness, and sleep-wake transitions.

Medulla Oblongata

A section of the brainstem responsible for regulating vital functions such as breathing, heart rate, and blood pressure.

Head Injury

Trauma to the head that can lead to various neurological symptoms, which may include concussion, skull fractures, or brain damage.

Crisis Intervention

Immediate and short-term psychological care aimed at assisting individuals in a crisis situation to restore balance to their biopsychosocial functioning and to minimize potential psychological trauma.