Red River Corporation Reports the Following Standards for Direct Labor

question 196

Essay

Red River Corporation reports the following standards for direct labor for the year:
Standard cost per hour $18.50
Standard quantity per finished good 2.5 hours
During the year,180,000 finished goods were produced.The direct labor efficiency variance was $38,850 favorable.The direct labor flexible budget variance was $700 favorable.
Calculate the following items regarding direct labor for Red River Corporation for the year:
A.Direct labor price variance
B.Standard quantity of direct labor for actual production
C.Actual hours of direct labor incurred for actual production

---

Definitions:

Personality Type

A classification of individuals based on their characteristic patterns of thoughts, feelings, and behaviors.

Brain Function

The activities and processes that the brain performs to support cognition, emotion, behavior, and physiological operations.

Behaviour

The actions or reactions of an individual in response to external or internal stimuli.