The Following Information Describes a Company's Usage of Direct Labor

question 20

Multiple Choice

The following information describes a company's usage of direct labor in a recent period.The direct labor rate variance is:

• A)$29,000 favorable.
• B)$29,000 unfavorable.
• C)$22,500 unfavorable.
• D)$52,500 favorable.
• E)$52,500 unfavorable.

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Definitions:

Net Income

The total earnings of a company after subtracting all expenses, including taxes and operating costs, from its total revenues, indicating the company’s profit.

Dividends

A portion of a company’s earnings distributed to its shareholders as a reward for their investment.

ASPE

Accounting Standards for Private Enterprises; a set of accounting principles and standards in Canada designed for private companies.