The Actual Cost of Direct Labor Per Hour Is $15

question 28

Multiple Choice

The actual cost of direct labor per hour is $15.20 and the standard cost of direct labor per hour is $14.00.One and a half standard direct labor hours are allowed per finished unit.During the current period,500 finished goods were produced using 2,050 direct labor hours.How much is the direct labor efficiency variance?

• A)$18,200 unfavorable
• B)$19,760 favorable
• C)$18,200 favorable
• D)$19,760 unfavorable

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Definitions:

Economic Activity

Activities related to the manufacturing, disseminating, and utilizing products and services in an economic system.

Fluctuations

Fluctuations refer to variations or changes in a condition, value, or level of economic variables over time.

Inflation

The escalation speed in general price levels of goods and services, ultimately leading to diminished power for making purchases.

Unemployment

The situation where individuals who are capable of working and are actively seeking work cannot find employment.