Use the Following Data to Find the Direct Labor Rate $\text {Standard:}$

question 51

Multiple Choice

Use the following data to find the direct labor rate variance if the company produced 7,000 units of product during the period. $\text {Standard:}$
$\begin{array}{ll}\text { Direct labor ( } 3.2 \mathrm{hrs} . \text { per unit } @ \$ 7 \mathrm{hr} .) & \$ 22.40 \text { per unit } \\\text { Actual cost incurred: } & \\\text { Direct labor }(24,500 \mathrm{hrs} . @ \$ 7.50 / \mathrm{hr} \text {.) } & \$ 183,750\end{array}$

• A) $14,700 unfavorable.
• B) $14,700 favorable.
• C) $26,950 favorable.
• D) $12,250 unfavorable.
• E) $12,250 favorable.

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Definitions:

Target Firm

A company that is the potential object of a takeover by another entity.

Conglomerate Acquisition

The purchase of a company by a conglomerate, which is a large corporation that owns a number of smaller companies in different industries.

Ford

Ford Motor Company is a global automotive and mobility company based in the United States, known for manufacturing and selling automobiles and commercial vehicles.

K-Mart

A retail chain that was once one of America's leading discount stores, known for its blue light specials.