Custom Tile Works Budgeted 2

question 60

Multiple Choice

Custom Tile Works budgeted 2.5 hours of direct labor 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 labor at $12.50 per hour.What is the direct labor price variance?

• A)$390 favorable
• B)$420 favorable
• C)$420 unfavorable
• D)$390 unfavorable

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Definitions:

Funds-Flow Statement

A financial statement that shows the inflows and outflows of funds from operations, financing, and investing activities, illuminating how a company's financial position changes over time.

Exchange Gains/Losses

The profit or loss resulting from foreign currency transactions due to changes in exchange rates.

Functional Currency

The currency of the primary economic environment in which an entity operates and carries out its financial transactions.

Property, Plant, And Equipment

Long-term assets owned by a business for the purpose of production, supply, rental, or administrative use, not intended for sale during the normal course of business.