Use the Following Cost Information to Calculate the Direct Labor

question 174

Essay

Use the following cost information to calculate the direct labor rate and efficiency variances and indicate whether they are favorable or unfavorable.
$$\begin{array} { l | l } \text { Actual costs and quantities: } & \\\hline \text { Direct labor cost incurred } \ldots \ldots \ldots \ldots \ldots & \$ 360,000 \\\hline \text { Direct labor hours used } \ldots \ldots \ldots \ldots \ldots \ldots & 20,000 \text { hours } \\\hline \text { Units produced } \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots & 45,000 \text { units } \\\hline \text { Standard costs and quantities } & \\\hline \text { Direct labor rate per hour } \ldots \ldots \ldots \ldots \ldots & \$ 16.50 \\\hline \text { Hours to produce one unit } \ldots \ldots \ldots \ldots \ldots & 0.5 \text { hours } \\\hline\end{array}$$

Identify arbitrage opportunities and understand the principles of arbitrage pricing theory.

Evaluate portfolio performance using risk-adjusted measures.

Understand and interpret regression outputs related to financial models.

Analyze the impact of changes in economic factors on expected stock returns.

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