Custom Tile Works Budgeted 2

question 255

Multiple Choice

Custom Tile Works budgeted 2.5 hours of direct labour per unit at $12.20 per hour to produce 520 hand-painted mosaic tiles. The 520 tiles were completed using 1,400 hours of direct labour at $12.50 per hour. What is the direct labour price variance?

• A) $390 favourable
• B) $420 favourable
• C) $420 unfavourable
• D) $390 unfavourable

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Definitions:

Division of Labor

The separation of a work process into a number of tasks, with each task performed by a separate person or group, leading to increased efficiency.

Services

Economic activities that produce intangible goods or benefits, such as healthcare, education, banking, and entertainment, as opposed to tangible physical products.

The Wheel

A revolutionary invention enabling easier transportation and movement of goods, significantly impacting human civilization.

Years Ago

A phrase used to indicate a specific amount of time in the past relative to the present.